Fundanna is a Cannabis-oriented offshoot of Reg CF platform TruCrowd, offering low-minimum investments in a variety of cannabis and hemp-related startups.
- Low investment minimums
- Open to all investors
- Some investments offer perks at various investment levels
- Startup investments are already inherently risky and illiquid, and additional uncertainty around cannabis industry adds to that risk
- Low selection of offerings
- FAQ is clunky and hard to navigate
While there have been a sprinkling of cannabis-related offerings on other crowdfunding platforms, Fundanna is one of a handful of niche platforms oriented specifically around cannabis-related investments. Fundanna is an offshoot of Title III Funding Portal TruCrowd.
Types of investments Fundanna offers
Fundanna offers investments in startups and growth companies in the cannabis and hemp industry. Interestingly, they are also raising money for themselves (as a direct offering under Reg D).
What do you get when investing with Fundanna?
Specifics vary by offering, but among the current offerings some are common stock while others are SAFEs (simple agreement for future equity).
Fundanna fee structure
Fundanna does not charge any fees to investors. They charge offering companies $3,500 to list their offerings, as well as 8% of the capital raised as a success fee (after crediting the $3,500).
Potential returns and cashflow
Investments on Fundanna are high-risk investments in startups and growth companies. There are no interest or dividend payments, and except under very limited circumstances, the investment must be held for at least 12 months, with minimal expectation of any market after that period. Most startup investments lose some or all of their value.
Breadth of offerings on Fundanna
As might be expected for a niche platform, selection is limited. As of this writing there are only three open investments (and one of them is to invest in Fundanna itself, using Reg D rather than Reg CF).
Regulatory framework and due diligence expectations
Fundanna (via TruCrowd) is an SEC registered Title III Funding Portal, which means they are subject to a range of rules and obligations around investor education and due diligence. All companies offering investments on Fundanna will have been through background checks of key officers and owners, and there are clear links provided to the relevant SEC filings made by the offering company. Prospective investors also have access to online forums to talk with other investors, and an online channel for asking questions of the company raising funds (and viewing answers of prior questions from others).