The Fundable crowdfunding site allows entrepreneurs to launch rewards-based crowdfunding campaigns first, followed by equity crowdfunding campaigns backed by accredited equity investors
Columbus, OH – In a prelude to what may become the industry norm, Fundable.com announced that backers and accredited investors have pledged over $100 million in funding commitments for both rewards-based and equity-based crowdfunding campaigns. During the past 18 months, startups across all industries have utilized Fundable to move their businesses forward. Different from any other crowdfunding platform, Fundable is dedicated exclusively to helping businesses as they seek early stage growth capital. The crowdfunding platform claims to be receiving over 15,000 new company registrations each month.
According to Fundable CEO Wil Schroter, “We are thrilled with the incredible success that companies have found through Fundable. It’s amazing to see companies using funding to grow real businesses that are creating jobs and making an impact on the economy.” A veteran entrepreneur himself, Schroter has nearly 20 years of experience founding successful venture-backed startups. Schroter knew firsthand that access to early stage capital was a critical problem for emerging entrepreneurs, and wanted to create a platform to solve this.
Schroter says, “the success of Fundable’s hybrid rewards and equity system proves the need for additional expansion capital after a successful rewards campaign. Companies can prove demand for their business through a rewards campaign, and then meet demand and continue to grow through an equity crowdfunding campaign.”
Due to Kickstarter’s and Indiegogo’s lack of equity investment options, successful crowdfunding campaigns are the taking the next step on Fundable when seeking addition rounds of funding. For example, HIDDEN, Ube and Uncharted Play all utilized Fundable to raise additional expansion capital.
Unlike Kickstarter, which experienced a huge backlash from Oculus backers that cried foul when their early rewards -based crowdfunding campaign raised $2.4 million dollars to launch the virtual reality computer goggles product line, Fundable can follow initial seed funding rounds with equity investment deals.
But just like Kickstarter, Indiegogo and more than another 1,000 crowdfunding platforms worldwide, Fundable is not allowed by the SEC to allow unaccredited investors to invest in equity investment deals.
Hopefully by the 3rd quarter of 2014 the rest of United States will be given the opportunity to strike it rich by investing in small startups. If pledgers are willing to back a set of Oculus goggles for $300 to jump start a business, the same backers should certainly should have been allowed to recoup their investment when Oculus accepted a $2 billion buyout from Facebook. According to Forbes, that $300 investment risk would have paid hobby investors a whopping $20,000 return on investment on their investment.
Fundable.com is one of the largest business crowdfunding platforms, with over $100 million in commitments, and is dedicated exclusively to helping entrepreneurs. Different from any other crowdfunding platform, Fundable offers both rewards and equity business crowdfunding options.
In an upcoming crowdfunding trend, Fundable recently acquired LaunchRock, a premiere tool for launching startup ideas, in order to acquire over 500,000 registered startup companies, 10 million users, and 15,000 companies.
The crowdfunding site is the brain child of veteran entrepreneurs who have raised countless venture capital and angel investment rounds to finance early stage growth startups.
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