How much does it cost?
Fundify does not charge any upfront fees. At the end of a successful campaign, Fundify receives 8% of the raise split between cash and equity depending on our agreement with you. The split is typically 6% cash and 2% equity. If a campaign does not meet its minimum raise target, Fundify does not charge a fee.
Depending on your needs, you may incur other legal, accounting and marketing costs that are not paid to Fundify. Fundify may advance some or all of these expenses to be repaid once your Startup meets your target raise.
According to Crowdfund Capital Advisors, a Startup can estimate about 5 percent of the raise in costs for legal, accounting and marketing expenses. This varies depending on how much you’ve already prepared and what you can complete in-house.
The only required, upfront costs are:
- Filing Form C with the SEC - $1,500. We partner with LawCloud to simplify this process for Startups and cut costs. While Startups often pay $3,000-$5,000 in outside legal fees for this step, our partnership and use of advanced APIs save you time and money.
- Escrow Agent, Prime Trust - $500 one-time, set-up fee and $25/month. The SEC requires Reg CF investments to be held by a third-party escrow agent until the campaign concludes.
Other expenses you may incur include:
- Preparing offering agreements
- Financial review and audit (if required by SEC), U.S. GAAP-compliant financial disclosures. The financial disclosure requirement varies based on the target raise amount you set. Learn more.
- Transaction fees depending on how Investors submit funds (ACH, credit cards, etc., which can be paid from raise proceeds)
- Creating campaign page (with in-house talent or outside help)
- Filming and producing video (optional but highly recommended)
- PR firm to promote campaign (optional)