Fundable is a crowdfunding platform whose goal is to remove some of the main obstacles that founders face when raising funds. The company focuses on deal presentation, investor identification, and outreach. Unlike its competitors, Fundable charges a flat fee. All proceeds from a fundraising campaign end up with the founders.
Founded by Wil Schroter and Eric Corl and launched in 2012, Fundable sells itself as a ‘business crowdfunding platform‘ that offers support to startups as they navigate the fundraising process.
Fundable offers businesses the choice of launching either a rewards-based crowdfunding campaign (Kickstarter) or an equity-based campaign where backers get a share of equity in the company in exchange for their money.
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Startups using Fundable host their fundraiser under three different campaign formats: Equity, Convertible Debt, or straight Debt. These options provide founders with a choice of models that best fit their circumstances. Usually, crowdfunding platforms have models are pre-determined.
These campaigns allow startups to make a predetermined portion of the business 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.
Fundable also provides a rewards campaign platform for founders that are looking to raise funds for their business on a smaller scale. Rewards are exchanged for cash contributions from Backers. Rewards are simply items of value that “reward” a Backer for supporting a founder’s respective business.
Fundable charges users a flat fee per month to create and manage a fundraising campaign. If you choose their consultancy service model giving you get access to Fundable’s consulting and creative team.
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 fundraising, and there is no additional fee for failure to meet a goal. This is a benefit because fewer fees are more cost-effective and it allows users to take home everything they raise.
Fundable facilitates rewards-based and equity-based crowdfunding (though not both simultaneously) to a wide variety of businesses.