FundersClub rewarding investors for referrals

Re:FundersClub rewarding investors for referrals by wtvanhest on Tuesday July 16, 2013 @10:26PM (#6055814)

I recognize that this isn't a pyramid scheme, but it does look a lot like a multi-level marketing structure.

MLMs can be viable, real businesses, but this may open the opportunity for abuse. I'm very interested to see how the SEC handles this.

I understand the founders want rapid growth, but accredited investors can make mistakes, and big ones. They are not professional investors, just accredited.

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Re:FundersClub rewarding investors for referrals by EScott11 on Wednesday July 17, 2013 @01:38AM (#6056246)

Good points, but the folks at Funders Club are professional investors. The referrers only get a kickback when FundersClub chooses to invest, and FundersClub will only do so if they think the company will be sufficiently successful. A standard which is likely higher than an unprofessional accredited investor's.

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Re:FundersClub rewarding investors for referrals by wtvanhest on Wednesday July 17, 2013 @09:19AM (#6057475)

ESott,

Thanks, I completely misread the article. I thought it was suggesting that FoundersClub would pay an investor who brings in another investor. I didn't understand that FoundersClub would pay an investor who brings in a company.

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