New Crowd Funding site Fundable to Challenge Kickstarter

A new player has entered the crowd funding scene called Fundable and it will also seek to connect startup companies and developers with backers that are willing to provide funds in exchange for rewards such as early versions of products.

The model looks very familiar to others in this space such as Kickstarter in that it is an all or nothing funding model and that there is a time limit involved, and if the funding does not make it to the stated goal they get nothing. The main difference may be that Fundable will seek to fund for-profit companies, while Kickstarter is all about creative projects, like literature, movies and the like.

By that token Fundable is expected to go one step farther than its rivals. According to its downloadable fact sheet, but not mentioned at all on its general web page is the fact that the company will also enable startups to offer equity in return for investments.

It looks as if the difference for investors is that they can in most cases invest as little as $1 in the rewards section but significantly more, say $5,000 in the equity investment side of the equation.

I have been increasingly interested in the crowd funding phenomenon, and have wondered if it will have legs. It’s nice to get a first generation product from a company or some sort of reward for investing a few dollars in a startup, but it has seemed to me that after the initial fun, the appeal would wane.

At least one recent study seems to bear that out when it showed that the average investor in a crowd funding company invests in only two projects, but the whole environment is very new, only being allowed in the United States after a bill was passed last April that enabled a much wider pool of people to invest in startups.

Fundable’s approach, at least to me, has a lot more long term appeal. While getting a Pebble watch for instance would be nice, getting a check larger than my investment might be even nicer.

According to coverage in Mashable it looks like the company needs to get approval from the Securities and Exchange Commission as a broker in order to handle investments and I suspect that is why it is not touting its equity option strongly. I expect that once approval is gained that will change and it will be interesting to see how this move changes the market, if at all.


  1. […] New Crowd Funding site Fundable to challenge Kickstarter and others – Mobile Sports Report […]

  2. […] is, which makes no mention of offering equity at first look on its web page but if you dig deeper you find that it has plans, at some point to do so, if it is allowed to do so after the SEC sets […]

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