To Turn The Crowd Into Venture Capitalists, FundersClub Raises $6M Seed Round — Biggest In YC History

For those unfamiliar, FundersClub is a website that picks promising startups and lets people invest in them over the web in return for real equity. Anyone who’s an “accredited investor” (earns over $200,000 a year or has a net worth over $1 million) can browse startups with open rounds ranging from a few hundred thousand to a few million dollars. They learn about the businesses, pick ones they believe in, and plop down as little a $1,000. The average investment so far is $2500. All the legal paperwork and money transfer happens right there online.

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