Fundable started in 2012 and is based out of Powell, Ohio. The company is an equity crowdfunding platform and is directed toward entrepreneurs and investors looking to fund their startups. The company has helped over 377,000 startups raise $282 million in investor capital.
Fundable has over 23,000 backers from an investor database and aims to help clients find the right funding for their business. Main clients include technology companies, health and beauty companies, mobile companies, and more. The company allows startups to generate a large amount of funding, quickly, from a network of backers. Fundable offers reward-based funding and equity-based funding. It is free to get started, but the company does charge a monthly fee to fundraise. Consumers that choose Fundable should remember that they must have a credit score of 550 or higher.
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 crowdfund. 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.
Startups can choose to fund their campaign through equity, or rewards. Reward-based funding is a 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.
Fundable is not an actual direct lender; rather it is a company that helps startup businesses raise funding through a network of backers. People looking for a company that will provide a small business loan must look elsewhere.
Those interested in Fundable should be aware that the company works in an "all or nothing" fashion. This applies to both reward and equity fundraises, and means that if startup businesses cannot generate enough investments to reach their set financial goal, they cannot keep any of the money; however, if businesses can reach their goal, they get to keep everything raised from backers. If the business's financial goal is surpassed, rewards funds are transferred directly into the client's bank account. Equity funds are processed by wire transfer or checks.
Those who choose Fundable's services should expect a $179 monthly fee to fundraise. The fee is to manage funds, and create the profile. Pricing is not pro-rated. For reward funding, there is a merchant processing fee of 3.5 percent, plus 30 cents per transaction, and funding is processed through backer credit cards. The fee is deducted through WePay.
Fundable is a platform where business owners can fundraise their startup. Clients create a profile and set a financial goal. If enough backers commit to funding the client's company, and the company reaches its financial goal, all raised funds are released to the client. However, if clients are short even a dollar of the financial goal, they cannot keep the funds.
Clients can choose to fundraise by reward or equity. While it is completely free to get started, Fundable charges a $179 monthly fee. Additionally, it is important to note that Fundable is not a direct lender. Fundable acts as a unique way to fundraise and promote a business; however, for small business loans, we recommend looking into other more established companies in the industry.
Jacqui Bopp Duncannon, PA
1 year ago
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