Fundable

Fundable is a crowdfunding platform specifically designed for small businesses and startups. Unlike Kickstarter, which focuses on creative projects, Fundable caters to entrepreneurs looking to raise capital through rewards or equity. It is part of the Startups.com platform, providing a suite of tools for founders.

For investors (backers), it offers a way to support emerging companies. Equity raises are generally reserved for accredited investors, while rewards raises are open to the public. It is a legitimate platform that has facilitated hundreds of millions of dollars in funding for companies across the US.

Frequently Asked Questions

1. specific fees for raising money?

Fundable charges a flat monthly fee to companies raising capital, rather than a percentage of the funds raised. However, standard credit card processing fees (approx 3.5%) apply to the transactions.

2. Who can invest?

Anyone can back a "Rewards" campaign by pre-ordering a product. However, "Equity" campaigns are restricted to accredited investors due to SEC regulations governing private placements.

3. specific minimum investment?

For equity campaigns, the minimum investment is typically set by the startup, often starting at $1,000. For rewards campaigns, backing levels can start as low as $10 or $20.

4. Is it all-or-nothing?

Fundable operates on an "all-or-nothing" basis for rewards campaigns, meaning the company only gets the money if they meet their goal. Equity campaigns are more flexible and deals are often closed offline via wire transfer.

5. Is it safe?

Fundable vets the companies on its platform to some degree, but as with all crowdfunding, there is a risk that the business may fail to deliver the product or return on investment. Due diligence is the responsibility of the backer.