It is completely free to register and browse crowdfunding campaigns on FundedByMe, and to start creating a campaign.
When creating Equity and Loan-based campaigns, there is a small €1000 fee that is charged only when the campaign is ready to go live.
How it works?
FundedByMe is a crowdfunding platform based in Stockholm, Sweden. It was created in March 2011 to address the need for a user-friendly crowdfunding solution for European entrepreneurs and everyday investors. FundedByMe is one of the first crowdfunding platforms in the world to offer a one-stop-shop solution for loan-based and equity crowdfunding. The platform has a major focus on cross-border investments that benefit both entrepreneurs and investors to assist with job creation and economic growth.
What is crowdfunding?
Pronunciation: /ˈkraʊdfʌndɪŋ/ Noun [mass noun] The financing of a project, business or campaign by raising many small amounts of money from a large number of people via the internet and social media. FundedByMe offers two types of crowdfunding, Equity-based and Loan-based.
What is equity crowdfunding?
Pronunciation: /ˈɛkwɪti_kraʊdfʌndɪŋ/ Noun [mass noun] Equity crowdfunding involves funding a company by offering shares in the company in exchange for funding from a large number of investors. These investors get ownership in the company and can also provide valuable knowledge and access to networks.
What is loan-based crowdfunding?
Pronunciation: /ləʊn/_/beɪs/_kraʊdfʌndɪŋ/ Noun [mass noun] Loan-based crowdfunding involves funding a company by offering interest in exchange for a loan to many lenders. Loan crowdfunding lenders are entitled to an interest over the course of the loan. For German companies offering loans, this can include a share of the profit.
What is the difference between loan-based and equity-based crowdfunding?
- Companies offer shares of company stock directly to investors in exchange for financing commitments
- Offer equity stake in company
- Typically raising €50,000 - €150,000
- Only available to European investors and entrepreneurs on FundedByMe
- Anyone living outside of the United States can invest in or create an equity campaign on FundedByMe.
- Companies offer interest to lenders in exchange for receiving a loan from lenders.
- Offer interest and, in case of German compaines, may offer share of profit
- Typically raising €50,000 - €150,000
- Only available to Swedish and German companies, but lenders worldwide
How does FundedByMe charge for its services?
For equity campaigns, there is a €1000 listing fee to go live with the campaign and an 8% success fee on the total amount of money raised at the end of the campaign. These fees are only applicable to entrepreneurs.
For loan-based campaigns, we charge a 4% (2% is for FundedByMe, and 2% goes to handling payment services) success fee on the total amount of money raised on a successful campaign. And due to the long relationship we build with companies and lenders on our platform, we charge a 1% administration fee on repayments made to lenders. This ensure that FundedByMe remains aligned with lenders’ interest in the companies following their repayment schedule.
Campaigns that don't reach their minimum investment threshold do not get funded and all raised capital gets returned to investors and there is no charge to the entrepreneurs.
What is included in this fee?
When entrepreneurs succeed, FundedByMe succeeds. But the success of each campaign is 99% the responsibility of the entrepreneurial team behind it. Entrepreneurs retain responsibility for campaigning and telling the world about their financing round. While FundedByMe is heavily vested in the success of every campaign on the platform, entrepreneurs receive basic marketing help to their campaigns, including:
- Access to thousands of registered investors
- Inclusion in the FundedByMe marketing communications - newsletters, blog posts, social media activities and, particularly, exposure on the hugely popular Facebook page All these inclusions are at the FundedByMe investment panel’s discretion and we tend to be biased towards those entrepreneurs who work the hardest at making a success of their campaign!
- FundedByMe entrepreneurs are guided along the way by means of regular tips to help maximise the exposure of their FundedByMe campaign, sent via a daily Email Digest that summarises all campaign activity.
- In addition, the FundedByMe team shares tips and best-practices through the brand’s blog to help campaigns succeed.
- At our core, every member of the FundedByMe team is a master networker. We talk about the campaigns on our platform to investors - big and small - and will also bring key campaigners along to relevant events and potential investor meetings.
At FundedByMe the belief is that if the entrepreneurs are working hard for their campaign success, so will we.
How is FundedByMe different from other crowdfunding platforms?
FundedByMe offers two methods of crowdfunding, Equity and Loan, to investors and entrepreneurs. FundedByMe is a global platform for entrepreneurs and investors to meet, specialising in cross-border investments. FundedByMe allows investors and entrepreneurs to get to know one another through an ethos of transparency and trust. Our easy-to-use platform guides entrepreneurs and investors through every step of the crowdfunding process and integrates social media.
What is the FundedByMe manifesto?
At FundedByMe we believe passionately that crowdfunding is the future of business investments for both investors and entrepreneurs. It is the modern way to finance startups and expand smart businesses. The combination of Equity and Loan crowdfunding gives entrepreneurs a platform from which to connect with ordinary people and business investors and raise the necessary capital in order to grow their dreams, help create job opportunities and create the next big thing.
What countries does FundedByMe operate in?
FundedByMe operates on a global scale with a local presence in Sweden, Finland and Malaysia and partners in Singapore.
FundedByMe is the biggest crowdfunding platform in Scandinavia and the leader when it comes to cross-border transactions. The FundedByMe platform has a strong focus on Europe for equity crowdfunding campaigns. Loan-based crowdfunding (P2B) is currently only available to Swedish companies.
Are there things that can not be uploaded onto FundedByMe for crowdfunding?
FundedByMe is a crowdfunding platform for the crowd to help grow business ideas and investment portfolios. The platform is operated on a sense of openness and trust and the crowd has the opportunity to regulate what gets financed, and what not. We choose to let common sense prevail. No foul language. No sexism. No racism. And no discrimination of any kind is tolerated. Those are the FundedByMe principles and we encourage the crowd to report any campaigns that do not subscribe to these.Read Full FAQ