VCs and Angel Investors have been able to support innovation for many years; however, some believe that this innovation has not affected the methods in which VCs fund companies. One company, FundersClub is trying to change that by using crowdsourcing to help early stage investment. They are allowing up to 95 individuals invest in one early stage startup, and to decrease the fears of investors FundersClub allows their investors to diversify their investment among different startups on their platform. However, this VC method is interesting because traditional VC has become successful through being hands on. By having an online platform as a VC and not requiring disclosure methods, many worry that FundersClub will not have the hands on approach that is necessary for a VC. It will be interesting to see if this online platform will work and if this will become a trend in early stage investing.
