FundersClub (YC S12) now shares carried interest with members on startup investment referrals

by Y Combinator7/17/2013

As barriers around general solicitation come crashing down, FundersClub is looking at new ways to stay on top.

The startup released a new feature today that rewards members of its community for making referrals. FundersClub will share 10 percent of the total carried interest on a fund with the member who refers the target company. Carried interest is a share of the profits of an investment or fund that is paid to the investment manager (in this case, FundersClub), despite not contributing any initial funds. If FundersClub receives carried interest on a fund, through a liquidity event like an acquisition or IPO, the referrer will receive a little something extra as well. This gives accredited investors an opportunity that it typically only available to general partners at VC firms.

Read the full article at VentureBeat


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