Fund.com (OTCBB: FNDM) is an online financial information resource focused on the $22 trillion investment fund market, and acts as a meeting place for buyers and sellers. According to the company, in the United States alone, more than 55 million households own funds.
The company likens itself to meeting grounds such as Creditcards.com and Bankrate.com, where individuals meet with institutions, but believes itself to be the only company focused on investment funds.
To generate revenue, the company relies on advertising and licensing its content for fees. By bringing investors and product providers to the same table, Fund.com creates a vertical marketplace that increases opportunities for investors and businesses to connect.
Fund.com also makes money by licensing its branded Index to third party product providers, such as banks. Fund.com’s Index is an aggregation of 25 leading hedge funds. The company’s analytics partner assembles the Index with Equities Magazine, where fees are accumulated when third party product providers license the use of the Index.
Similar to the business model of the S&P 500 or Russell 2000, Fund.com is paid a percentage of the assets under management that are benchmarked to the Index. As the assets grow, the company is paid more fees stemming from the Index’s performance.
Let us hear your thoughts: Fund.com, Inc. Message Board