- Funding services
- Fundable process
- Reward or equity based
The Fundable platform was designed to make obtaining a business loan a more simple and straight-forward process. Rather than having to go through traditional means to obtain a loan, Fundable has created a resource almost every business can take advantage of. Fundable is a hands-on service that helps clients create a profile, and market their business. The company acts as a platform that essentially helps business-owners crowd fund. In fact, Fundable was created by people who have raised funding from dozens of investors. It is completely free to get started, and startups can share their profile with others prior to the fundraising launch, for no charge. Additionally, there is no success fee.
To get started, clients first create a company profile. The profile includes a company overview, the product description, and the financial funding goals. Clients then set their fundraising terms, and start marketing their business. Fundable allows customers to showcase their company, and fundraise with family, friends, family, colleagues, customers and media.
Investors can view one's company overview and financial goals, and easily commit funds simply through the profile page. The minimum amount backers can fund is $1, and it can be made by credit card. For equity-based funding, the minimum amount backers can contribute is $1,000 and everything is processed offline through wire transfers or checks.
Reward- or Equity-Based
Startups can choose to fund their campaign through equity, or rewards. Reward-based funding is better fit for startups with less income, but that have something else valuable to offer in exchange. Backers donate smaller amounts of money (like $50) for reward-based companies.
A reward is not business stock, and is often something smaller-like a preorder of the company's product. It is more difficult to raise large amounts of funding with the rewards method.
Companies looking for a lot of funding should explore equity-based methods. Their earned traction will attract accredited investors. In fact, investors may want to own a portion of the company. Equity usually fundraises more than $50,000, and businesses are not required to have a fully developed product. Clients who choose this method have to give up equity.