growvc

Instead of keeping whole membership fee as our revenue, we use 75% of the membership fees for community fund investments, so it goes to startups, and community members decide, how it is invested. We then reward members for these selections, if the investments are good. When a member has paid the fee, the one with funder role (investors) can then make direct investment without any commission and entrepreneurs can raise money to their startup without any commission. To clarify; there are no traditional commission, only the membership fee.

Fee	Investment cap	To Community fund	Effective fee	Effective cost per investment	Remarks
$110.00	$500,000	$82.50	$27.50	0.01%	for montly investments
$30.00	$50,000	$22.50	$7.50	0.01%	for montly investments
$20.00	$25,000	$15.00	$5.00	0.02%	for montly investments
$950.00	$50,000	$712.50	$237.50	0.47%	for annual investments
$400.00	$100,000	$300.00	$100.00	0.10%	for annual investments

As you can see, the effective costs are always less than 0.5%. Of course, if an investor or entrepreneur doesn’t use the full amount, the effective cost is higher. But that’s why we have those steps that everyone can find her or his right level and pay an optimal membership fee.

Grow VC is really a costs effective model to make and look for investments. We also work to find standard models for investment agreements, due diligence and other needed services, to keep those costs down too. The Grow VC model is cost effective compared to any investment service, but especially the costs structure is totally different from the traditional VC model. Our aim is really to create an effective market for startup funding. Startups and investors need it.

Update: You can also read the related blog post about our model in full detail and listen for related audio below.