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Comment by makomk | Hacker News Reader

This is hilarious because it's right out of the ponzi playbook - financial scammers love to make their schemes invite-only since it gives clients the feeling that they're part of an exclusive club and makes them less likely to question the investment.

I doubt that FundersClub is a ponzi or even a scam in the legal sense, but it's entirely possible you'd have to be a sucker to invest and there there will be shadier imitators that are outright scams looking to pick up the people who can't get into FundersClub, especially if the JOBS Act is implemented and they can seek money from the general public.

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So you "doubt" that FundersClub is a ponzi scheme or scam (a very very serious accusation), yet you accuse them of employing the same tactics?

By definition, a scam intends to mislead .. it pretends to be what it is not. So if FC does not intend to mislead, it's an honest business and you have no reason to tar it's reputation with the words you've used.

Regardless of what you think of the JOBS Act (which in many reasonable interpretations is a boon to those who would not otherwise be exposed to the opportunities now exclusive to the so called "1%"), it is wrong to tarnish FundersClub with the labels you've used, sans some sort of evidence .. which you don't have because FC is not a scam.

What makes you so sure that FC is not a scam?

It's a YC company, I know the founders, who are my batchmates, and they are not a scam. The model they've used to pick startups (I do not know the details) is excellent .. out of our batch they picked many of the most successful companies.

I have no financial interest in FC, btw. I have not invested in any FC co's, though I certainly would if I were in a position to.

Many businesses have characteristics of ponzi schemes without being ponzi schemes. You're right that there is a bright line distinction in some places (i.e., if there is actually a fraud), but why is it wrong to bring up that there is a resemblance in some way?

I'd probably also note that the JOBS act, while it does give additional opportunity, doesn't do much for your ability to assess an opportunity. My colleague Jim Allen gives a good overview:

http://blogs.cfainstitute.org/marketintegrity/2012/09/07/job...

doesn't do much for your ability to assess an opportunity

This is YOUR responsibility as an investor, not the governments'. I'd rather not have a government limiting my freedom in the name of protecting me for my own good.

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