Monday, 28 April 2014 00:00

Fundable passes $100M in crowdsourced cash for startups

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Looking for cash for your startup? Fundable just announced that it has surpassed $100 million in commitments from backers and investors.

That means, communications chief Laura Moller said, that it’s now the biggest crowdfunding platform around.

Fundable works like a crowdfunded venture capitalist, taking in funding commitments from over 53,000 backers and disbursing them in small investments to hundreds of startups in a model very similar to Kickstarter or Indiegogo. If you see a company you like — perhaps Pixel Press, which enables anyone to build their own video games — you can choose to back that company.

Interestingly, Fundable doesn’t take a percentage of the investment, but simply charges a small monthly fee. Investors can choose equity or Kickstarter-like rewards.

Businesses like Fundable have only been possible since last year, when the JOBS Act made it legal not only to raise money but also to tell people about it in public — so-called “general solicitation” rule.

“Before, it was like having your house for sale but not being able to tell anyone about it but your friends and family,” Fundable CEO Eric Corl told me then. “This will open up a tremendous amount of capital for entrepreneurs.”

At least $103 million worth as of this moment, it appears. And counting.

Fundable is a crowdfunding site for startups. Fundable’s platform takes advantage of the new JOBS Act, also known as the “Crowdfunding Bill,” which now allows startup companies to publicly raise money from anyone willing to back them.

Read 598 times Last modified on Sunday, 27 April 2014 23:22
Brian Cohen

Brian is the Chief Editor at fundedflow