How much does it cost?
Fundify does not charge any upfront fees. At the end of a successful campaign, Fundify receives 6% of the raise and 1.5% in equity.
Depending on your needs, you may incur other legal, accounting and marketing costs that are not paid to Fundify. We 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 - $2,500 (estimate for initial Offering Statement). While Startups often pay $3,000-$5,000 in outside legal fees for this step, our partnerships and advanced technology save you time and money. Fundify auto-generates an initial DRAFT Form C for free, and offers an optional 2-pass review by CrowdCheck (including financial statements review) for which they charge only $500.
- Escrow Agent, Fund America, a division of 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. Our escrow agent also conducts any required Bad Actor Checks for $45 each.
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)