Fundable Review

Crowdfunding enables companies to raise capital by collecting small individual contributions from a large pool of donors through online platforms which are available. Fundable is one such platform where entrepreneurs can get funding for their businesses. The different types of crowdfunding available at Fundable are either reward-based crowdfunding or equity-based funding in which the capitalists get a share of stock in the company in exchange for their investment.

Basically Fundable helps companies in two ways. Firstly, in marketing these campaigns and secondly helping companies in setting up their fundraising profiles while also circulating these profiles in their personal and professional circles.

As per the company statistics, around $568 million has been raised for different companies using this platform. The company is more geared towards those start-ups which have a solid plan of action rather than those which do not have the vision to survive in the long run. The types of industries which Fundable caters to are:

• Beauty
• Boats
• Cars/Trucks
• Commercial
• Communications

Fundable interest rates & fees

The Fundable does not have any fixed funding duration. The fee is $179 per month and the funding terms are different for both types of funding. For rewards campaigns, the company uses an “all or nothing” model of crowdfunding. If the start-up is unable to achieve its funding goal during the funding period it will not receive anything. According to Fundable, the average campaign takes 60 – 90 days to complete.

Unlike most other crowdfunding platforms, Fundable charges a fixed monthly income rather than charging a percentage of the money being raised as their fee. But it also implies that a fixed fee has to be paid for using the platform regardless of the success of the campaign. This makes Fundable a little less attractive option for small businesses and entrepreneurs who might not be very clear about their businesses’ outcomes and performance in the long run along with those who might not have a big capital requirement.

Likewise, it is also great for those projects which can achieve their goals and capital requirements easily in the short term without having to spend a hefty amount as a success fee on other platforms. The premium package is priced at a one-time fee of $ 2,499. Moreover, the payment processing fee only applies towards the rewards campaign. This is because with an equity campaign the payments are made offline directly with an accredited investor to the campaigner after the fundraising goals are achieved.

A major requirement of a rewards campaign is that the offer must include at least three levels of rewards for the investors. However, the rewards can be either in the form of a promise to provide a service or a preorder of a product. With Fundable the flexibility of offering rewards in terms of service is available as opposed to other platforms.

Application Process

While applying to Fundable one has to create a company profile in which all the details regarding the company have to be listed such as the company, its primary purpose and the fundraising goals. After the application process is completed one has to wait for Fundable to approve the profile before moving further. After that comes the option of either choosing a rewards campaign or an equity campaign. The rewards campaign pledge can range from $ 1 and end up towards $ 1000 since there is no set limit.

Sales & Advertising Transparency

The terms and conditions are pretty simple and straightforward to understand.

Customer service and technical support

The platform provides detailed and well-curated answers to almost all the topics related to investing, running a start-up and crowdfunding. There are also large numbers of infographic materials and start-up stories provided which are available for free.

For more support, there is a direct toll-free number available along with email, and live chat services on the website. This is surely an added bonus point for Fundable since other competitors are just providing an email or contact form for support. It shows the level of support and commitment which goes beyond the level of support typically offered on other platforms.

Cons of Fundable

• Inadequate funding option for rewards campaign: The fundraising structure for the rewards campaign is all or nothing which is a point of concern for some users who were of the view that a flexible option would have been much better.
• High monthly fee: For some the $ 179 monthly fee is a bit too high because either the size of the business is small or tight budgets make them unable to be able to afford a high monthly fee.
• Unhelpful customer service: Some users have complained about the unavailability of customer service to locate investors as well as poor customer service in some instances.

Pros of Fundable

• Allows both rewards and equity-based funding: The flexibility of both options available makes it very convenient for some users since many users believe that successful rewards raise can be a great foundation for equity raise.
• Attractive for backers: Some users find the monthly subscription fee a great way to weed out non-serious campaigns.
• Supportive customer service: The customer service was appreciated by a lot of customers for being very responsive and useful.

Is Fundable right for your business?

Fundable cannot be a crowdfunding option for the masses. Its monthly fee and strict policies regarding who can use the platform can make it an unreachable source of crowdfunding for small businesses with limited budgets. However, for serious businesses which are looking for a reliable source of crowdfunding with significant amounts Fundable is the best option. The fact that it follows a flexible approach towards the choice of running a rewards or equity campaigns without taking any cut for the money raised makes it an excellent crowdfunding platform, especially for businesses which have a predetermined action plan.