To Turn The Crowd Into Venture Capitalists, FundersClub Raises $6M Seed Round

I don't think this will work well for investors. The best deals in Silicon Valley go to the best angels who generally don't need a website to be able to get in on the deal. There is no shortage of access to capital for proper companies in SV. The investors who put in small amounts of capital generally aren't going to see returns on investment because startups are just <i>too</i> risky.<p>Look at CircleUp for what I believe is a better model -- crowd funded capital for semi-established consumer brands.

Crowdfunding startups has always sounded to me like the best way to hide risk from retail investors seeking a quick buck since the invention of the mortgage backed security credit default swap.

Can someone explain to me why you need to make 200k/year or have 1 Million in assets to participate in this when the minimum funding level is only 1k? I want to participate in this, but can't.

I'm incredibly skeptical of the weak term sheets that would come out of this process. It looks like the crowd gets dilutable stock with no option for next round priority investing. Best of luck on their success - I hope my initial take is wrong, because this would be exciting at scale.

congrats to a great team and amazing execution! FundersClub isn't the first in the space, but it's definitely the first to gain so much traction in such little time. I hope they keep killing it!

<i>FundersClub firmly believes it’s legal because it never handles the money directly, instead raising money for a venture fund that funnels into a startup.</i><p>-- Intersting. This sounds more like lead-gen.

Massive, scary legal risk here. This won't last long.

So much for dogfooding...