Fundable is a funding platform for startups. We provide entrepreneurs with the tools they need to showcase their deal to potential customers and accredited investors.
Startups create a profile that provides an overview of their company, their fundraising goals, and the rewards they are willing to provide potential backers.
Backers can offer their support in the form of cash pledges starting at $1 in exchange for rewards provided by the Startup. Rewards can range from a company t-shirt to a special advisory board position with the company itself. They do not involve any equity ownership whatsoever.
In addition to offering cash, Backers may also offer personal assistance to the startup. This could be a key introduction made to a potential customer or an offer to write some code for their application. Each offer is 100% voluntary by the Backer and free to the Startup, but helps get the startup off the ground.
Startups create a profile that provides an overview of their company, their fundraising goals, and private business collateral (financials, pitch deck, etc) that they would like accredited investors to review.
Interested accredited investors can request access to the private section of the startups profile. Once acces is granted by the startup, the accredited investor can review the business collateral, review deal terms, and make a commitment to invest. All investment transactions currently take place offline once the round is complete.
Three reasons; 1. Rewards, 2. Equity, and 3. Affinity
1. Rewards: Startups provide rewards to backers that become more significant as the size of the pledge increases.
2. Equity: Startups offer accredited investors equity in exchange for their investment.
3. Affinity: Many backers appreciate the rewards, but are motivated by their connection to the startup concept or the entrepreneurs themselves.
Depending upon the type of raise, yes, they can. We currently offer a rewards and equity based style raise. For rewards raises, no equity is provided to backers. For equity raises, accredited investors can back companies with capital investments in exchange for equity. The investment minimums can range from $1,000 to $50,000 and are only available to accredited investors and at the discretion of the startups in accordance with all State and Federal laws.
Yes. Although cash pledges are important, the Fundable community also focuses on the collective contribution of our backer community. Backers are encouraged (but not required) to offer any sort of personal assistance that they think may help the startup, from a skill set they might have to a connection to someone the startup would love to meet.
If projects are not fully funded to meet their specific goals, there is risk that the startup will not be able to meet their stated milestones. Therefore we require each startup to submit a fundraise target that includes a specific set of milestones that this funding will support.
Note that startups can certainly raise more money than their stated goals, but if their goals are not met within the allotted time, all funding will be canceled and no Backers will be charged.
How do I start a fundraising campaign?
There are two steps. First, you must apply for a Startup Profile. We will review your application to make sure it meets our guidelines. Once approved, you will then build out your startup profile and submit the details of your fundraise goals, including each of the reward types and pledge amounts. Once your fundraise campaign is approved, you may launch!
What are the requirements to launch a project on Fundable?
Anyone may submit a startup company application for consideration, but we do look for startups that meet a few key criteria.
What do I need to have ready to create a project?
At a minimum you need to have a clear presentation of what the project goals are as well as your ability to reach a large enough audience to promote your fundraise. Beyond that we'd like to see any visual assets such as videos or images that can be used to help convey the sheer amazing-ness of the pitch.
How can I increase my chances of being accepted to Fundable?
Study the elements of the Startup Application process and just use good sense. If you have a great project that lots of people would love to contribute toward as well as a real audience that you can reach, you're on the right path. We try to be transparent and up front about what we're looking for, so feel free to ask us.
What types of rewards should I offer?
Stuff people genuinely want. T-shirts and mugs are great, but your ability to generate higher dollar pledges will be tied to the creativity you use in developing higher quality rewards. Make rewards personal and special. Try to offer a copy of your product that people would love to have. The rewards show that you really care about people's contributions, so it's worth putting a lot of thought into them.
What happens if I don't reach my fundraising goal?
All pledges are voided and the fundraise is over. Fundable works on an all-or-nothing funding model that requires that you meet your fundraise goal in order to receive funds.
How long does it take to receive funding from a successful campaign?
Funding is transferred through the backer's credit card directly to your WePay account. Thereafter you will transfer that money into your checking account. This can take up to 3 or 4 days depending on how quickly all the money gets posted. It's very similar to how PayPal works. Note that we at Fundable have no way to make this go any faster.
What fees does Fundable charge?
We charge $99 per month during your active fundraising campaign. You are not billed for anytime your fundraise is not active. We do not charge a percentage of your final raise amount, no matter how large your raise is. Our credit card processor will charge 3.5% of your final raise amount, but only if your raise is successful.
Does Fundable charge a percentage of the fundraise?
No. We only charge a small flat monthly fee during the active fundraise. Whether you raise $10,000 or $1 million, all of the proceeds go directly to you, minus the cost of processing credit cards.
What other fees are charged?
If your fundraise is successful, all credit cards from backers will be charged through WePay, our credit card processor. WePay will deduct 3.5% from your final raise amount if you are successful. This is a standard credit card processing charge and we do not set that price directly.
How does Fundable collect their fee?
Fees for an active fundraise are paid monthly via credit card at the beginning of the fundraise. You may cancel your fundraise any time after you launch and will only be billed one month at a time. Refunds are not given for unused portions of a month.
Do the funds from backers go through Fundable?
No. All funds are processed directly through WePay. Each startup is required to create their own WePay account to receive payment. These accounts must be setup prior to initiating a fundraise. Upon the completion of a successful fundraise, all funds will be transferred directly to the account you specify in WePay.
No. All equity investments must be closed offline in accordance with all State and Federal laws.
Are there any other fees?
No. You pay a flat monthly fee during your fundraise and a 3.5% credit card processing fee to the credit card processor only if your fundraise is successful.
Why do you charge a flat rate versus a percentage?
A flat fee structure gives every startup a very low cost of entry and does not penalize them for having a larger fundraise. This provides a predictable, affordable pricing mechanism that allows successful startups to keep nearly all of their funds at a nominal cost.
How do I back a STARTUP?
Each project will have a ginormous "back this startup" button that you may use to begin the process. You will then be able to select a specific pledge amount and a reward. All pledges are made using a credit card through WePay.
What do I get in exchange for backing a startup?
Rewards or Equity! Startups provide specific rewards for each pledge tier amount. The rewards are nice, but you'll also get the opportunity to start connecting to the founders themselves through frequent updates and communications about their status. It's a great way to get connected. Some startups also choose to offer accredited investors the opportunity to potentially invest in their deal.
What is the minimum pledge amount?
The minimum pledge and investment amounts are set by the startups. Most startups will indicate a range of rewards or equity in exchange for set amounts of pledges or investments.
If I back a startup, when does my card get charged?
For Rewards Raises:
All cards are charged immediately once a fundraise has completed and has met its goals. If the campaign does not meet or exceed its funding goals all pledges are considered invalid and no funds will be deducted.
For equity Raises:
The startups will coordinate with the accredited investors to coordinate equity investments.
If funding does not succeed, am I charged?
No. Funds are only transferred if the startup meets its fundraising goal in the allotted time.
Can I cancel a pledge that I make?
Yes, right up until the fundraising has closed you may cancel your pledge on the Fundable system. After the fundraise has ended, and you are charged, you will have to work directly with the startup to arrange any changes or refunds to your pledge amount.
Are pledges refundable after funding is successful?
That is up to the startup. While Fundable is there to help connect startups and backers, the business relationship thereafter is up to the two parties involved. Kinda like eBay.
I want to help a startup by doing more than just pledging, can I?
Yes, please do! Startups appreciate any help you can provide and backers are encouraged to offer assistance that they think may benefit the startup.
What types of assistance can I offer?
Lots of stuff. Maybe you're a great Web developer and can help them with their Web site. Maybe you can make an intro to the CEO of Home Depot. Maybe you're a subject matter expert on exactly the type of market the startup is entering into. All of these pearls of wisdom and assistance can make a world of difference to a startup and we highly encourage your participation.
Can I charge for my assistance?
No. Any assistance offered to the startup must be completely free. We require this in order to prevent people from soliciting the startup.
What happens if the startup doesn't deliver the reward?
Entrepreneurs are generally good people who will go out of their way to make good on their commitments, but problems do happen. This isn't like buying something from WePay. In many cases the rewards you were promised may still have to be created, and sometimes timelines change. We rely 100% on the communication between you and the startup team to handle the delivery of your promised rewards.
How quickly are rewards delivered?
Each reward should have an estimated delivery timeline associated with it upon pledging. Please understand that the startup still has to receive all funds, place orders, and manage the delivery process. We will do our best to help the entrepreneur estimate delivery timelines, but you shouldn't be surprised if there are delays.
How can I see the status of my reward?
After the close of the funding campaign the entrepreneur will contact you directly about the status and shipment of your reward.
How do I submit my shipping info to a Startup?
The startup will contact you at the close of the funding to obtain your shipping information and provide a status of your reward delivery.
How can I communicate with a startup that I have backed?
It's easy. Just use the "Send Message" button on the startup profile and you will be able to send a message directly to the team.