Proving The Value Of Crowdfunding, Soldsie Raises $425K And Hires One Of 72 Investors Via FundersClub
Online venture capital firm FundersClub is pioneering equity crowdfunding and today demonstrated the value of bringing on dozens of investors rather than a handful. E-commerce startup Soldsie just raised $425,000 from 72 investors through FundersClub, and ended up hiring one. New Chief Scientist Yun-Fang Juan, a founding engineer of Facebook’s ads team, discovered Soldsie thanks to FundersClub.
The JOBS Act that eases restrictions on equity crowdfunding hasn’t been finalized yet, but enough of it is in place to legalize FundersClub. The Y Combinator graduate launched in July to pick promising startups and helps them raise venture capital from the crowd through its online platform. Accredited investors (people who earn $200,000 a year or have a net worth over $1 million) can browse startups on FundersClub, research their businesses, and then invest as little as $1,000 in exchange for equity in the startup. All the legal paperwork and money transfer happens online.
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