Funders Club crowdfunds itself (and other startups) into existence

Funders Club is attempting to build the future of NASDAQ.

The crowdfunding platform brings together accredited investors with promising startups looking to raise money. Investors can look at profiles of the featured companies and if interested, make small equity investments directly on the site.

All of the smaller checks are aggregated into one entity and given to the startup. By pooling together smaller investments, Funders Club essentially sets up a micro fund for each startup. This eliminates concerns that crowdfunding for startups could lead to an over-crowded cap table.

This model makes it easier for aspiring investors to find and invest in startups. They can make multiple small investments to diversify their portfolios. Smaller investors can also save time and money because Funders Club provides due diligence and contracts for them. It also gives investors who do not have access to startups the ability to form relationships. People from all over the world have signed up.

Since launching about a month ago, Funders Club has raised over $1.3 million on the site, including fully funding itself.

Read more on VentureBeat. 

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