Below are some of the most commonly asked questions about FundedByMe, equity crowdfunding and crowdfunding in general.
If you have a specific question to an entrepreneur you can post it on the "Questions" tab of the campaign presentation.
If you have a specific question to FundedByMe, click the chat bubble below or proceed to our contact page.
How does Equity-based Crowdfunding work on FundedByMe?
Equity Crowdfunding is the funding of a company by selling shares to crowd investors in exchange for partial ownership.
How do I know if the value of a company is correct?
Estimating the valuation of a private company can be hard, and there are no simple ways to do this. When composing your company valuation, keep in mind what you estimate the future potential of a company will be, and then judge whether the current valuation of the company lives up to that potential. FundedByMe does not assess or advise on companies' valuations.
How does the payment process work?
Once the campaign hits 100% of its crowdfunding goal on FundedByMe, our system issues all investors with payment information. The standard terms of the payment information is 5 days and transfers are made via bank-to-bank transfer.
Can I sell my shares at a later date?
Once you own the shares you can sell them on any secondary market on which the company is listed, or when the company enters a stock market. You can also sell your shares as part of the company being acquired by a third party. For details about how you can sell your shares, please consult the campaign owner directly.
Who can invest in companies?
Anyone living outside the US can invest in companies on FundedByMe. Due to legislation in the US, our platform does not currently extend to US investors, unless they are accredited and able to prove this.
If funding does not succeed, are investors obligated to pay anything?
No. In the event that funding is unsuccessful, the investor is not obligated to pay anything and their investment is automatically canceled.
Are there risks involved in investing in equity crowdfunding campaigns?
Investing in any business can be rewarding, particularly if you can identify and invest in an early-stage startup before it’s well-known and its profits start to grow. That said, as with all other types of equity investments, companies can fail or not deliver an investor return. The high-risk nature and limited liquidity of investing equity in private companies need to be carefully considered before making a decision, as there is a very real possibility that you might lose your money invested. This is why we place such an emphasis on ensuring all campaigns have a business plan and financial projections to enable you to make an informed choice about your investment.
What can I do to maximise my investment?
Get involved beyond your transfer of funds to the entrepreneur! Perhaps you have a network that could help the idea succeed? If so, make some introductions. Offer your input as a member of the board, an advisor, or pitch in if you see they need help with marketing or other aspects of the business. Crowdfunding is about more than simply raising funds, it's about building a community, making connections and helping entrepreneurs grow.
Will I be notified when a campaign closes?
Yes. You will be contacted by the entrepreneur once the campaign reaches 100% to prompt your payment. You will also be alerted once the campaign successfully closes via the FundedByMe system. In the case that a campaign did not reach 100% of their goal, your investment is automatically canceled and you will be notified that the campaign did not succeed.