Fundable is a combination equity- and rewards-based fundraising platform from the startups.co platform.
- Website: https://fundable.com
- Investment Types: Startups/Business Financing
- Security Types: Equity
- Sectors: Agriculture, Clothing, Fintech, Healthcare, Restaurants, Retail, Travel, VR, and Wellness
- Minimum Investment: 1000
- Must be accredited
- Wide selection of investments
- No fees to investors
- Includes some international opportunities
- Only open to accredited investors
- Startups are high-risk, low liquidity investments
- Volume of deals makes interface challenging to browse
- Site content oriented more toward companies raising than investors
- No curation or due diligence performed by platform
Fundable is part of the startups.co family of companies (which also includes Zirtual and Clarity), and is a close analog to more well known crowdfunding platforms like Kickstarter and IndieGoGo, offering companies the opportunity to raise equity financing or offer rewards-based campaigns. The investor tools and resources feel like a bit of an afterthought, as the platform overall is much more geared toward companies raising money (which makes sense given the relationship to startups.co).
Types of investments Fundable offers
Fundable offers both donation and equity crowdfunding campaigns, with terms and specifics varying considerably. While many of the companies are startups, there are also raises from restaurants, breweries, retail stores, and even some real estate funds.
What do you get when investing with Fundable?
Details vary by investment, but most companies offer either equity or convertible debt. Some of the companies raising are investment funds themselves, for example one raising money to purchase and flip foreclosed homes.
Fundable fee structure
Fundable does not charge any fees to investors. They charge companies raising money a monthly fee.
Potential returns and cashflow
Investments via Fundable are high-risk investments in private companies. Most of the investments have no explicit expectation of payments, dividends, or other cash flow. Investments in private companies can lose some or all of their value. While some investors achieve excellent returns from startup investing, that is a rare outcome and requires substantial diversification over time combined with very careful investment selection.
Breadth of offerings on Fundable
Fundable has a very wide selection of companies listed, covering a broad range of geographies, sectors, and markets. As an investor it can be difficult to browse and identify investments. It’s likely that Fundable expects most prospective investors to be driven to offering by the raising companies, rather than arriving via the Fundable platform itself.
Regulatory framework and due diligence expectations
Investments listed on Fundable are offered under SEC Reg D, and are open only to accredited investors.
It does not appear that Fundable performs any review or diligence on the companies listing, and valuations and investment term are set entirely by the listing company.
You may be able to invest in Fundable using a Self-Directed IRA or 401K. To learn more about using a Self-Directed retirement account for alternative investments, visit our friends at Rocket Dollar.