View Full Version : (TheFundersClub) Coinbase

08-23-2012, 10:44 AM
Coinbase - A Paypal for Bitcoin
This fund will only close if at least $250,000 is committed by Aug. 31, 2012, midnight.
$250,000 FundersClub fund target

Key information


Coinbase named by Next Web as One of 10 Best Startups from Y Combinator's S12 Demo Day (http://thenextweb.com/insider/2012/08/22/here-top-ten-startups-saw-y-combinator-demo-day/)
Paypal for bitcoin (bitcoin is an online currency that allows for instant payments without transaction fees, including international money transfer, but that is presently difficult to use for non-technical people)
In just four weeks, >15,000 active users, >$44,000 in deposits, and >$65,000 in transactions. Bitcoin market cap has grown 60%, from $50M to $80M, in the past 6 months, $2M transacted/day.
"Coinbase wants to be the PayPal of Internet-only currency" - AllThingsD
The founder specialized in fraud prevention as an early software engineer at Airbnb, co-founded UniversityTutor.com (has 28,000 registered tutors), and created one of the first bitcoin apps for Android. Rice educated.
If you have questions before investing, please email coinbase@thefundersclub.com and you can submit a question to the Q&A forum below or you can also schedule a call with the Coinbase CEO, Brian Armstrong.
https://thefundersclub.com/media/productscreenshots/2012-08-19_transaction-volume.png (https://thefundersclub.com/media/productscreenshots/2012-08-19_transaction-volume.png)
https://thefundersclub.com/media/productscreenshots/2012-08-19_sign_ups.png (https://thefundersclub.com/media/productscreenshots/2012-08-19_sign_ups.png)
Investment terms:

Raising $250k on FundersClub to augment existing funds raised
$1k minimum investment, $2.5k to guarantee spot in fund, $250k maximum investment
You are investing in a fund which receives the same investment terms as other institutional investors already invested in the company (SV Angel/ Ron Conway and Start Fund/ Yuri Milner, etc as investors). If the company does not raise a priced round within 2 years, the convertible note will convert at a $5 million valuation. If the company does raise a priced round within 2 years, the convertible note will convert to preferred equity at the valuation of the priced round. To review terms in detail, click the “View summary and details of stock held by fund” link in the sidebar to the right.

Recent Investors:

Y Combinator (including Andreessen Horowitz, SV Angel, Yuri Milner, and General Catalyst), Alexis Ohanian, Greg Kidd, Garry Tan, and Harj Taggar.

What will I get when I invest?

Ownership in units of a fund set up for investment in Coinbase (see Investment Terms for details)
Membership in FundersClub Investor Club - network of FundersClub investors that get special invitations and early access to deals, invitations to private events with FundersClub investors and founders, membership gifts and other benefits
Thank you video from CEO
Inclusion on “Insider investor distribution list” to keep you in the loop when we hit certain milestones and also to ask for targeted help and advice (e.g., if we are looking for a new employee or connection, would love your help!)
Connect with Brian on Linked In

08-23-2012, 11:12 AM
$132,500 raised so far. I actually invested here just now. I think it has a tremendous future!

08-23-2012, 12:47 PM
Any clue what % of the company they are giving away for the $250k? I couldn't find it in the documents at TheFundersClub. Coinbase seems like a great idea, and if they play their cards right it could make a nice dent in Paypal's armor.

08-24-2012, 09:35 AM
Good question... I invested more to help the company then to make money. I believe in the idea and think it could be a boon for online commerce. Last I checked they were up to $138k. They have a long way to go in the next week.

08-28-2012, 09:44 AM
Interesting, it looks liek Coinbase has added 10 more days to the "Funded by" date. This gives them until Sept 10th to raise an additional $108k or so. I think they may do it.

08-29-2012, 02:06 PM
Ok so I too am considering investing here. Here are several reasons this new platform should explode in usage in the coming months ahead:

- Paypal fees are much too high, especially for micro-payments
- Users and well as new ecommerce solutions can charge people as little as a few cents without incurring any fee what so ever. There is no electronic means to transfer money free of charge
- Bitcoin is the currency of the future. Fiat currency is being diluted on a never ending basis.
- Coinbase has many bit name investors with pull within the ecommerce industry
- Ease to use. Just as easy as paypal to use, only free

08-30-2012, 04:36 AM
Hi, I'm interested too, but cannot access FundersClub since I'm not invited as a member.

@admin, how did you invest?

08-30-2012, 08:02 AM
I just clicked on the sign in with facebook button and it created an account for me. I signed up maybe 2 weeks ago....

09-02-2012, 06:51 AM
I gather that because this is an equity model it's not a crowdfunding gig - ?

09-02-2012, 06:31 PM
This is crowdfunding. The difference is that you need to be an acreditted investor to participate.

09-06-2012, 08:24 AM
Dear Member,
Thank you for another great week at FundersClub. We continue to work hard to cultivate our community and to improve your experience with us. Due to popular demand from our Members, we have launched a new feature to have a live webinar/Question & Answer session with a company founder, and we have also launched a new startup opportunity.

Coinbase CEO Brian Armstrong will hold two live webinars (will be recorded) today for interested FundersClub investors - September 6, 2012 at 5PM PST and September 6, 2012 at 11:59PM PST
To view the webinar at the scheduled time click here (http://thefundersclub.us5.list-manage.com/track/click?u=b0e4e4fa824f2cfb6a4fbe479&id=5fb3f73c21&e=b9ae4aff2f). Coinbase is the first company on FundersClub to launch a series of two live webinars. Members can attend the live session, ask questions and listen to questions from other members. If you have questions you'd like answered during the webinar, you can email them to coinbase@thefundersclub.com and we'll add them to the question list. If you are unable to attend the webinar, we will record and post it on Coinbase's FundersClub profile after the session.

10-03-2012, 12:53 PM
Alright, so the funding for this project has closed. Good news to those who have invested:

Dear Partner,
Congratulations on your reservation in Coinbase FC Fund I. The fund successfully oversubscribed its target of $250,000, reaching $268,700 reserved.

We will follow up with you soon for next steps for the fund, including FundersClub counter-signing the legal documents, as well as processing payments. There are several legal steps each fund needs to go through before processing payment, so this process will likely take 3-6 weeks. We will follow up with you via email to keep you updated, and we will give you advanced notice before we process payments. We may need further information from you before we finalize your documentation, in which case we will contact you directly.

In the meantime, please do not hesitate to reach out to us if you have any questions.

Congratulations again on your reservation in the fund, and welcome to the Club.

The FundersClub Team

Who else here has invested in Coinbase?

10-30-2012, 04:11 AM
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12-29-2012, 01:39 PM
Nice to see this project finally closed and got what they wanted. Bitcoin has a future and I think Coinbase could very well play into that future if they play their cards correctly.

02-01-2013, 04:01 AM
My Experience with Coinbase as an Everyday Type of User (very dissatisfied with service, even Paypal not this much red tape). Awaiting a response to email, but obviously, I won't be using Coinbase since they turned me away :(



I am highly upset with your service! I went through ALL of your verification processes and bought 10 BC. Waited and waited, only 2 find out "transaction not approved high risk" That is insane! What the he** do u expect from me? I have had the linked account for well over 20 yrs, balance more than enough 2 pay for your max amount of 10 silly little BC. So, I verified email, phone, as well as deposit verification amounts only to be turned away. Makes no sense.

What, so you want any of your potential customers to be turned away and leave with a very frustrating view of Coinbase?

After all of this time has passed and I was expecting my BC, even after 6 day delay, I find I am back at square 1. So, I will just continue to either go to bank with cash purchase of BC through other services much more agreeable than yours, or else be forced to buy Moneypaks, make an exchange with someone selling BC and pay fees. In the meantime, I will express my extreme dissatisfaction with your pathetic business practices to anyone on the boards who cares to listen.

ps-and quit leaving all of your damn cookies on my computer! Also, it is just ridiculous that you don't have a direct "contact us" link on your actual website.

09-22-2017, 04:42 AM

Any idea if we can still invest in Coinbase or Exodus?

Paul Mampilli

09-22-2017, 04:44 AM
Any chance we can fund Coinbase now?