Fundable Review 2021: A Flat-Fee Crowdfunding Platform

Fundable’s flat-fee model can make successful crowdfunding surprisingly cheap―and unsuccessful campaigns unpleasantly expensive.
Fundable logo
Fundable
  • Check
    Flat monthly platform fee
  • Check
    Rewards and equity options
  • X
    Cost for unsuccessful campaigns
  • X
    Difficulty of unsubscribing

If you’re a startup founder looking for potential investors, Fundable’s crowdfunding site could be just what you’re looking for. It offers entrepreneurs a simple platform for raising money through both rewards and equity crowdfunding campaigns.

But before you jump into a campaign with Fundable, you do need to know how it works. Because Fundable actually uses a completely different fee model than most crowdfunding sites―meaning it’s not a great fit for every small business.

In our Fundable review, we’ll explain the ins and outs of this crowdfunding platform to help you decide whether to raise money with Fundable―or to take your crowdfunding dreams elsewhere.

Fundable crowdfunding campaigns

Campaign type
Suggested funding goals
Fundable fee
Payment processing fees
Get started

Rewards

$1,000–$50,000$179/mo.3.5% + $0.30

Equity

$50,000–$10 million$179/mo.N/A

Data effective 7/7/21. At publishing time, pricing is current but subject to change. Offers may not be available in all areas.

Fundable is best for flat-fee equity crowdfunding

Pros
Pro Bullet Low, flat monthly fee for fundraising
Pro Bullet Rewards and equity campaign options
Pro Bullet Extra campaign consulting available
Cons
Con Bullet Flat fee that penalizes unsuccessful fundraisers
Con Bullet No automated unsubscribe options
Con Bullet No published stats on success rates

Fundable’s crowdfunding platform lets you raise money by offering either rewards or equity to your backers. That may sound just like other crowdfunding sites you’ve heard about, but Fundable does things differently.

Most crowdfunding platforms out there let you start and run a fundraising campaign for free. You only pay when you successfully fundraise―that’s when your average crowdfunding site will take a percentage of your campaign proceeds.

Fundable, though, doesn’t use that percentage-based model. To run a campaign on its site, you’ll need to pay a monthly subscription fee. It’s a flat fee―not based on your campaign goals or proceeds―so you’ll pay $179 per month whether you’re raising millions of dollars or just a few thousand. (That also means that longer campaigns will cost you more.)

On the one hand, that can make Fundable surprisingly affordable. In fact, if you raise just $3,850 in one month, Fundable costs the same as a crowdfunding site that charges a 5% fee (like Kickstarter or IFundWomen). Raise any more than that, and Fundable becomes the more affordable option. 

On the other hand, the flat-fee model can make Fundable more expensive for unsuccessful crowdfunding. Because while Kickstarter and similar sites are free until you raise money, Fundable makes you pay upfront. Whether you end up getting the money you need or not, you’re out that $179 monthly fee.

Money
Fundable alternatives

Not sure Fundable’s flat-fee model fits your fundraising needs? We have plenty of alternative options on our list of the best crowdfunding for startups.

Because of its flat fee model, we recommend using Fundable for equity campaigns rather than rewards campaigns. Fundable rewards campaigns are “all or nothing,” meaning you don’t get a cent if you don’t reach your fundraising goals. 

But its equity campaigns let you keep whatever you raise―so even if you don’t quite meet your fundraising goal, you’re more likely to feel Fundable’s monthly fee was worthwhile. 

So what kinds of companies can raise money on Fundable? All sorts, honestly. Its successful campaigns have included salons, energy companies, software companies, and more. You can see a bunch of successful campaigns on Fundable’s website if you want to see specifics. (Nonprofits aren’t likely to do well on Fundable, though―those should stick to GoFundMe and GoFundMe alternatives.)   

To figure out if Fundable is right for your small business, though, we need to get down into the nitty gritty of how its crowdfunding actually works.

Fundable crowdfunding options

As we told you earlier, Fundable offers two types of crowdfunding: equity crowdfunding (which gives investors some ownership in your business) and rewards crowdfunding (which gives backers tier-based rewards).

Either way, Fundable charges the same monthly fee for as long as your campaign is active.

And with either campaign option, you can pay Fundable to help you set up and design your crowdfunding campaign. Fundable doesn’t list pricing for these marketing and consulting services, but we’ve seen some reports of fees between $1,500 and $3,000.

Fundable crowdfunding

Campaign type
Suggested funding goals
Fundable fee
Payment processing fees
Get started

Rewards

$1,000–$50,000$179/mo.3.5% + $0.30

Equity

$50,000–$10 million$179/mo.N/A

Data effective 7/7/21. At publishing time, pricing is current but subject to change. Offers may not be available in all areas.

As we told you earlier, Fundable offers two types of crowdfunding: equity crowdfunding (which gives investors some ownership in your business) and rewards crowdfunding (which gives backers tier-based rewards).

Either way, Fundable charges the same monthly fee for as long as your campaign is active.

And with either campaign option, you can pay Fundable to help you set up and design your crowdfunding campaign. Fundable doesn’t list pricing for these marketing and consulting services, but we’ve seen some reports of fees between $1,500 and $3,000.

Rewards

As we said, rewards crowdfunding works better for businesses that have concrete products to offer―whether that’s an energy bar, a board game, a lightbulb, or something else.

Fundable rewards campaigns operate on an all-or-nothing model. So you’ll have to set a fundraising goal (Fundable suggests a max of $50,000 or so) plus start and end dates for your campaign. 

If you meet your goal in that time, you get all the money you raised (minus payment processing fees from WePay). If you don’t? You get nothing. You can always try again, sure, but you’ll have to keep paying Fundable’s monthly fee to do so. 

We should also point out that Fundable’s payment processing fees are a bit higher than we’ve found on other platforms. Most crowdfunding sites charge around 2.9% + $0.30, while Fundable (through WePay) charges 3.5% + $0.30. But remember, Fundable’s flat fee can end up being cheaper than platform fees from other sites. So even with higher payment fees, Fundable may be an inexpensive choice.

One other thing to consider about Fundable’s reward crowdfunding: Fundable doesn’t have the kind of brand name recognition that crowdfunding platforms like Kickstarter or even IndieGoGo have. You’re less likely to have random people simply stumble on your campaign and contribute. 

So while Fundable has perfectly serviceable rewards crowdfunding, its equity campaigns are where it really shines.

Best Crowdfunding Sites for Startups
iFundWomen
Best for women
GoFundMe
Best for charities
CircleUp
Best for B2C brands
Fundable
Best flat-fee option
Learn more about our top brands.

Equity

While Fundable still charges the same monthly fee for its equity crowdfunding, equity campaigns otherwise work pretty differently. 

There’s no payment processing fee, for example, because Fundable won’t actually help process your payments―that’s all arranged between you and your investors. Likewise, equity campaigns don’t have a set end date, so you can keep your campaign going as long as you want (and are willing to pay that monthly fee). Plus, equity campaigns let you keep what you raise, even if you don’t meet your goal. 

There’s also the legal stuff. Equity crowdfunding has lots of rules and regulations, and giving equity to investors means lots of legal paperwork. 

But unlike some platforms, Fundable won’t help you with any legal stuff―you’re on your own. Fundable simply serves as your marketing platform, a way to connect with investors. All the actual negotiating, deal making, and paper signing happens off-site. (If you’d like more help with the legal side of your equity campaign, a platform like Wefunder might be the better option.)

Info
Accredited investors

Equity investors on Fundable have to be accredited investors with a minimum income or net worth. That means you’re dealing with investors who can invest big bucks.

So how does Fundable’s equity crowdfunding actually work, then? You’ll have a public profile that includes basic info about your business and your goals. If an investor is interested, they can request to see more―your private profile. This part of your profile will include way more details and documents. Think things like business plans, projections, financial statements, and so on.

In most cases, your profile will be the beginning of a conversation―not the end. A potential investor may ask for more documents, for example. You’ll have to negotiate specific equity terms with your would-be investors. And yes, you’ll have to get all your legal paperwork in order.

That work can pay off though. Fundable says its investors usually invest between $25,000 and $100,000, and that they have to invest at least $1,000.1

And remember, you can keep your equity crowdfunding campaign going as long as you want. That gives you plenty of time to find all the investors you need.

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Fundable crowdfunding process

Think you’re interested in using Fundable? Let’s take a look at how your campaign will work.

To begin with, you’ll need to sign up for a free Fundable account. While Fundable does charge that flat fee we’ve told you about, you only have to pay when you want your campaign to go live. You can set up your profile for free―no credit card needed.

To set up your profile, you’ll decide which kind of campaign you want to run―rewards or equity. From there, depending on which type you opt for, you’ll add more information to your profile.

For a rewards campaign, that will include the following, at minimum:

  • Rewards for backers
  • Fundraising goal
  • Campaign end date

And for an equity campaign, it will include things like these:

  • Executive summary
  • Business plan
  • Fundraising goal
  • Financial projections

Remember, too, that you can pay Fundable to help you create and set up your campaign (including marketing materials and pitch materials).

Once your campaign looks good to go, you’ll pay Fundable to make it go live. Fundable will have to approve your campaign first. This should only take two or three days, and it’s just to make sure you’re not violating Fundable terms of service―Fundable isn’t actually going to vet your campaign or anything.

When you get approved, your campaign will go live. Then, you just have to get backers. So make sure you do plenty of marketing and spread the word about your campaign.

If you’re running a rewards campaign, your campaign will automatically close on your chosen end date. (Fundable suggests giving yourself 60 to 90 days to let your campaign gain momentum.) But for an equity campaign, you can leave your campaign up as long as you want.

With any luck, you’ll find plenty of backers and investors to raise the capital you need.

Bell
Crowdfunding alternative

Crowdfunding takes a lot of work, with plenty of preparation and marketing required to be successful. If that sounds like too much, you might prefer an alternative funding method, like peer-to-peer lending, instead.

Fundable customer reviews

We’ve told you how Fundable works―but do its customers think it’s a good value?

For the most part, yes. Fundable has earned a 4.1 (out of 5) on BestCompany.2

Now, most of those reviews do come from people who paid for Fundable’s extra consulting and marketing services. But many of these reviewers have rave reviews for Fundable’s staff, saying they’re quick to communicate, very responsible, and simply good at what they do. Plus, many reviewers liked that Fundable gave them access to a network of investors.

There are some negative reviews, though, who say those services are a waste of money. Some customers say, for example, that Fundable made amateurish, ugly pitch decks. And others report that Fundable’s “network” of investors isn’t actually helpful, since you could google investors yourself. (Of course, that takes time.)

So some customers seem to believe Fundable offers a great way to raise funds, while a smaller minority think it’s a waste of money.

Unfortunately, we can’t really back any of these reviews up with stats. Unlike some other crowdfunding sites (especially Kickstarter), Fundable doesn’t provide any stats on success rates or average funds raised. Fundable says that more than $615 million has been raised through its platform―but that’s pretty much it as far as transparency goes.3

In other words, while some Fundable customers think it’s a worthwhile platform, no one can say if the numbers agree.

Fundable FAQ

Is Fundable.com legit?

Yes, Fundable is a legitimate crowdfunding platform. It’s helped plenty of startup companies raise funds, including some you might have heard of―like Owlet.

How does Fundable make money?

Fundable makes money by charging a flat monthly fee for live fundraising campaigns on its platform.

What type of crowdfunding is Fundable?

Fundable offers both rewards crowdfunding and equity crowdfunding.

What is the cheapest fundraising site?

If you need a cheap fundraising site, we recommend GoFundMe. It doesn’t charge any platform fee for most campaigns, so you just have to worry about its (competitive) payment processing fees.

How does a funder work?

A funder works by providing money to your startup in exchange for either a specific reward (if you’re running a rewards campaign) or equity in your business (with an equity campaign). Either way, your company gets money, and the funder gets something they want too.

The takeaway

Fundable’s reward and equity crowdfunding can be a good way for entrepreneurs to raise money for their startups without going to a lender. Just be careful, as its unique fee structure can make Fundable an affordable option for successful campaigns or an expensive lesson in crowdfunding.

Ultimately, we recommend Fundable mostly for businesses interested in running an equity crowdfunding campaign. (For rewards crowdfunding, we’d stick to other platforms.)

With a good idea and a well-crafted campaign, Fundable just might help your startup get the funds it needs.

Crowdfunding is only one way to attract potential investors. Learn more about how angel investors and venture capitalists can help your business.

Related content

Sources

  1. Fundable, “What is the Typical Amount a Single Investor Will Invest?” Accessed July 8, 2021.
  2. Best Company, “Fundable.” Accessed July 9, 2021.
  3. Fundable, “Launch a Fundraise for Your Startup Online.” Accessed July 8, 2021.

Disclaimer

At Business.org, our research is meant to offer general product and service recommendations. We don't guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services.

Chloe Goodshore
Written by
Chloe Goodshore
Chloe covers business financing and loans for Business.org. She has worked with many small businesses over the past 10 years, from video game stores to law firms. Those years watching frustrated business owners try to sift through their many options gave her a passion for breaking down complex business topics. She wants to help business owners spend less time agonizing over their businesses so they can spend more time running them.
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