Investors Knowledge Base
Does Fundify evaluate Startups that are listed in its Marketplace?
Yes, absolutely. Before including a Startup on our site, we:
- Review the Startup’s Profile and application to raise capital on our site, conduct basic fact validation and analysis, and interview the Founder and potentially other core team members. Our executives leading this review have personally evaluated thousands of Startups and have a long history of investing in and building Startups. This process is only to verify suitability to list an equity crowdfunding campaign (“offering”) in the Fundify Marketplace.
Fundify’s process is based on what the SEC defines as a "resonable basis" review, and in no way guarantees or indicates the potential success or expected returns or outcomes for any Startup investment. In fact, Fundify is not even allowed to express our opinion of any Startup listed on our site. Our reviews are first-level verification of facts provided by the Startups.
Fundify’s Industry Expert Network may provide comments related to a specific industry that a Startup is involved in, based on the Expert’s relevant background and experience. Experts' opinions also provide no guarantee of investment performance, outcomes or returns. They simply provide industry-related perspective for reference.
- Fundify’s partner Fund America, which is a division of Prime Trust, conducts “ Bad Actor ” (more ) background checks on the Founder, other Startup executives and owners that hold 20% or more of the company’s allocation of equity (at the time of the funding campaign or “offering”).
- Collect and make available online the Startup’s financial statements, as required for the Startup’s Form C filing with the SEC.
- Assess the Startup’s intended or existing method for keeping accurate records of its investors.
- Ensure the Startup has completed and submitted Form C Disclosure Form (more info ) to the SEC.
As part of Fundify’s Startup applicant review process, we may connect Startups with a member of Fundify’s Industry Expert Network who has relevant industry background and experience to further review the proposed funding campaign details. The Expert may interview the Founder and possibly other principals in order to evaluate key elements of a Startup’s market opportunity in a specific industry. Expert reviews may include:
- Business model and plan
- Competitive landscape
- Sales traction
- Offering terms and more
Regardless of the reviews conducted by Fundify or any industry Expert, Investors should not rely on these reviews. Always conduct your own due diligence before investing in any crowdfunding opportunity. Learn more about Startup investment risks in our Investor Educational Materials.