Fundable

5.4

Overall Score

13 User Reviews

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Fundable is a crowdfunding site devoted exclusively to helping companies raise capital. Launched in 2012, the company generated an impressive amount during their first year in business—over $80 Million. Due to Fundable being created by the founders of startups who have collectively raised funding from dozens of angel investors and venture capitalists, they understand the challenges you face as you create a business, and offer their personal expertise to those raising crowdfunding campaigns. The numbers continue to grow significantly. Today they have generated more than $204M in funding. 

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Overall
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13 User Reviews

The Good

  • Model type
  • Fees
  • Maximum allowed raise
  • Deadlines
  • Receiving funds
  • Administrative work options

Model Type

Companies using Fundable have a choice between a Rewards or Equity model. This option allows businesses to choose which model will work best for their specific fundraising needs. This is rare in the crowdfunding world where crowdfunding models are typically pre-determined. A successful Rewards raise can be a great foundation of support for a subsequent Equity raise.

Rewards-based campaigns allow startups to provide an item of value in exchange for a monetary pledge. For example, if a Backer commits $100, the startup may offer a copy of the product once it's produced (like a pre-order). Rewards-based raises do not offer any equity (company stock) to Backers and are best effective for smaller dollar raises (typically below $50,000). Typically, a startup will rely on commitments from current customers, personal support from their social network, or do-gooders-making it a better choice for smaller funding goals.

Equity campaigns allow startups to make a pre-determined portion of the company available in exchange for capital. This model type is most effective for funding goals of more than $50,000 by companies looking for larger sums of operating capital to move their business forward.

Fees

Fundable charges users a monthly fee of $179/month to create and manage your fundraising campaign. Pricing is not pro-rated. While it's true that larger companies may hardly notice this fee, it could be a pretty steep amount to pay for companies just starting out.

For Rewards-based campaigns, funding is by credit card using a third party processor called WePay, requiring a fee of 3.5% + 30¢ per transaction. Although some crowdfunding sites for startups don't charge monthly fees, they charge completion fees and non-completion fees. Fundable charges no completion fees or partial fees. This means that users are not charged an additional fee upon completion of their fundraiser, and there is no additional fee for failure to meet a goal. This is a benefit because less fees is more cost-effective and it allows users to take home everything they raise.

Maximum Allowed Raise

Fundable does not have a specific cap or maximum amount of how much you can raise. They recommend $50,000 max if you're using the Rewards model and anything $50,000 and over if using the Equity Model.

Deadlines

There is no minimum or maximum duration for fundraising with Fundable. With Equity fund types, an investor's commitment will need to be renewed every 90 days. A typical Equity fundraiser is at least 60 days. The average Rewards-based fundraiser lasts 60-90 days.

Receiving Funds

How funds are received depends on the funding model you choose. At the end of your Rewards campaign, all funds are automatically collected and transferred to the your Startups' or business' bank account. For your Equity campaign, all commitments are processed offline after the close of fundraise.

Administrative Work Options

Fundable's team takes a very hands-on, step by step approach-from profile creation to marketing-to help companies understand the fundraising process and launch their funding campaigns. Whether creating a profile or revamping a marketing strategy, a member of the Fundable team is there to offer assistance. This approach is delivered based on the fact that the founders of Fundable have much personal experience raising money and are familiar with the process. Therefore, they are able to offer personal expertise to their clients.

Administrative assistance from Fundable comes in the following ways:

  • Profile Page Creation Wizard: A step-by-step Profile Creation Wizard that lets you showcase your company and begin sharing your fundraiser page with friends, family, colleagues, customers, and the media in a short amount of time. Newly created profiles are reviewed by the Fundable team to make sure that they are a good fit for the platform.
  • Impressive, helpful tools they provide their users: Guides are offered and contain the best practices for starting and growing a company and advice from the country's top entrepreneurs and investors. Well-designed infographics are added monthly to help simplify seemingly complex ideas and processes. These tools are great for visual learners and makes important topics much easier to understand. There is also a section available for users to read other startup stories and learn how some of America's most notable companies got started. Chipotle, Pinterest, Amazon, 5-Hour Energy, and Under Armour are some of the start up stories available on Fundable's site.

The Bad

  • Fund type

Fund Type

Fundable uses an "all or nothing" fundraising type which applies to both Rewards and Equity models. All or Nothing means your startup or business must meet or surpass your goal in order to successfully collect funds. As frustrating as this may be for entrepreneurs, it actually makes sense in this type of circumstance; investors only want to contribute if they are sure their money can be put to good use and assist with company expansion.

The Bottom Line

Fundable is a great option for individuals looking to raise capital. The fee may be steep for some entrepreneurs, but the benefits of this site are enough to justify paying a monthly subscription-particularly their administrative work options where they walk you through your campaign step-by-step from start to finish. With many help aids available and a team with loads of personal practice and wisdom, Fundable is likely to deliver a positive, successful experience for its users.

User Reviews

1.7

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  • 2

    Oleg K

    December 13th, 2017 Mountain View, CA DETAILS

    Value for your money
    Quality of product or service
    Customer Service
    Company trustworthiness

    Really scammers. Representative calls and loose any interest after understand that you don't want to spend $2.500 for crazy concierge service. Too lazy to explain details, just avoid this company.

    Helpful?
  • 2

    salif

    November 1st, 2017 Winston-Salem, NC DETAILS

    Value for your money
    Quality of product or service
    Customer Service
    Company trustworthiness

    stay away from this company if i can even call it a company scam scam scam i paid them $2300 for nothing, they gave me bunch of useless email i wonder how they sleep at night

    Helpful?
  • 10

    Victor Pritzker

    May 23rd, 2017

    As a consultant I have recommended Fundable to three clients. In each case the staff at fundable have delivered as advertised, always made themselves available, were extremely helpful and patient. I am struck, in my experience with them, that they do not over promise in regard to any sort of guarantee of success in what is a very difficult and competitive market for investment. However, they do offer a landscape that is available to those that would otherwise not have either access to qualified investors, or such a high level of aid in preparing a workable pitch. For beginners particularly, they also offer a suite of other services from Biz plan building to PR. I certainly recommend Fundable.

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  • 10

    Christine M

    May 7th, 2017 Zanesville, OH

    Enjoyed working with Fundable very much. They were very friendly, helpful and answered all our questions. Our final product was top notch! Would highly recommend!

    Helpful?
  • 9

    Julie A

    April 18th, 2017 Reynoldsburg, OH

    I decided to spend the $2,499 to work with Fundable and it was 100% worth it. They clearly know what they are doing. They built me a beautiful page and matched me with investors that knew about my industry. It took about four months and I was able to find the money I was looking for.

    Helpful?
  • 0

    jonas

    April 9th, 2017

    I made a big mistake and hired these guys. Maybe it is legal, but I call it a scam. A lot of big promises were made from the start and after they saw that I was hesitating they dropped the price "temporarily". No contract was made even though I asked (it should have raised huge red flags, but it seemed to be a large legit company). The only thing that they do is publish your company profile on their platform, which is close to useless. If you ask they will provide small lists of potential media contacts (which are irrelevant and not interested) and some investors, that have not heard about them and probably just baught from Indians that collect email from the internet (these Indians are probably more honest than fundable.com). After it become obvious that there is no way this can work and it is nothing close to what was promised I asked to return the money. It was of course declined by the sales people, went all the way to Wil Schroter their CEO, no refund. Bloody crook. Stay away from this boiler room, value your time and money.

    Helpful?
  • 0

    Danielle

    March 19th, 2017 Middlesex, NJ

    I believe this company is a complete scam. They made lots of promised to get investors to get my business but didn't do a think once I paid. Then when I tried to cancel, they wouldn't and had all sorts of excuses. Stay away!

    Helpful?
  • 10

    Benjamen Janey

    March 14th, 2017

    Really enjoyed my experience with Funable.com and their friendly staff. Working with Fundable is like having a Investment consultant in your back pocket through the funding process. Our Fundable.com profile allowed our business to recruit new talent, and create awareness during our raise. It took us about a year to get backed. They also have a full suite of business products and services start-ups can utilize to grow quickly post funding. Thanks again!

    Helpful?
  • 0

    Somesh

    January 13th, 2017 Piscataway, NJ

    Not only did they never do a think to help us get funding, but they kept charging us after we asked them to stop

    Helpful?
  • 0

    Praneet Raj

    October 17th, 2016 Pittsburg, CA

    Really disappointed by Fundable. They promised me that they will provide specific list of investors in my domain, they provided me a crappy half filled excel sheet with no formatting. There was not even a single investor from my domain. In fact I had a student in the list marked as an investor as well. I will not recommend using Fundable at all. I completely agree with other reviewers as they feedback is consistent.

    Helpful?
  • 0

    Bruce Martin

    September 7th, 2016 Downers Grove, IL

    Not only did Fundable deliver absolutely ZERO results for our start up, but despite a clear discussion with their representative about NO recurring billing when we signed up, they put us on recurring billing, and refused to refund the charge when we contacted customer service. We would never recommend Fundable - based on delivery, service and on their refusal to refund a recurring bill.

    Helpful?
  • 0

    Graeme

    July 14th, 2016 Corona, CA

    I was very excited at first to team up with Fundable in order to create connections with potential investors. What I experienced quickly turned my excitement into anger and frustration. i was one of the 'naive' entrepreneurs to believe in the hype and pay the $2k for a list of "over 400 investors in my particular space". Not only were 25% of the contact emails dead, but a vast majority were no where near my company space and interest. On top of that, they promised to feature my company....which they did... and I got hit with not 1 but 3 fraudulent overseas scammers. I understand the loose vetting process but this was ridiculous. Finally, the visual design department is a complete joke. My innovative online music tech company come across feeling more like my 3rd grade music teachers classroom. Completely missed the mark and I had to scramble to find a designer who had to redo the whole thing. When I pointed out my dissatisfaction to the company, I received an email reply of "I'm sad to hear that, best of luck". There was no inquiry into "why" I was so dissatisfied which leads me to believe that they really don't care about their clients or the hardworking entrepreneurs they take advantage of. I'm having much better success looking for good investor matches on my own, free of charge, using sites like Gust and AngelList. Please take my advice and save your money!!! I'm sure you can find much better with your capital. Good Luck!

    Helpful?
  • 0

    Tim Campbell

    May 25th, 2016 Charlotte, NC

    Do not use this service. Unless you need someone to create your profile pages, you would be much better off using a free service like Gust and AngelList. Don't let them fool you when the say they will "give you access to 23,000 investors. It's not true. They give you a list of investors from AngelList and Linked In. You can search for that information for $0 if you want. Also, if you think your profile is being reveiwed by accreddited and vetted investors you would be wrong about that too. 3/4 of the inquireies we received were scammers from other countries. Seriously save your money and go a different route.

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