Fundanna cannabis business equity crowdfunding review | finder.com

Fundanna cannabis business equity crowdfunding review

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Crowdfunding can connect you with investors interested in funding your cannabis business.

Fundanna is among the first investment crowdfunding portals specifically serving the cannabis industry. But funding won’t come without giving up some equity in your business.

Product NameFundanna Cannabis Business Equity Crowdfunding
Min Loan Amount$10,000
Max. Loan Amount$1,070,000
Interest Rate TypeFixed
RequirementsMust own a startup in the cannabis space. You're not eligible if your company is outside of the US or already reports to the SEC.

What is Fundanna?

Fundanna is a brand of truCrowd, a Chicago-based crowdfunding portal that connects cannabis startups and small business owners with accredited and nonaccredited investors from around the world. Unlike other crowdsourcing platforms, Fundanna specializes in serving startup cannabis business.

Because federal laws list marijuana as a Schedule I drug, banks and other lenders are prohibited from providing funding to cannabis-based businesses. But recent changes at the SEC have allowed companies to secure up to $1 million per year from small investors.

By crowdfunding through Fundanna, cannabis businesses can specify a target amount to raise in exchange for equity. The amount you give away depends on the value of your company and the amount you want to raise.

What businesses does Fundanna fund?

Fundanna helps cannabis businesses of all types get the capital they need. Eligible businesses may provide medicinal marijuana or recreational marijuana in states where it is allowed.

Businesses that have sought crowdfunding through Fundanna include a mobile app that connects medical marijuana users to dispensaries and a healing hemp oil.

What are the benefits of Fundanna crowdfunding?

Fundanna offers cannabis-based businesses a way to get the money needed to start or expand without going through a traditional bank. It offers a powerful support team of marketing experts committed to your success.

  • Fund your business. Get capital by connecting with investors looking to get involved with cannabis-based businesses.
  • No risk. If your company doesn’t succeed, you aren’t required to pay back the investment.
  • Advertising support. Fundanna can connect your business with advertisers willing to promote your services.
  • Easy registration. Import a Facebook, LinkedIn, Google Plus or Twitter account to sign up quickly.

What to watch out for

Fundanna can get your business funded, but its services don’t come without risks.

  • You’ll give up equity. Fundanna’s funding requires selling equity or stock in your company. The more you accept, the bigger percentage you’ll pay out in the future as your business grows.
  • Unproven services. Though sparse online reviews are positive, Fundanna — founded in 2017 — has yet to have a business reach its goals.
  • High fees. Fundanna charges a nonrefundable listing fee of $3,500 and a success fee upon reaching your funding goals.

Compare more cannabis business financing options

Rates last updated November 13th, 2018
Unfortunately, none of the business loan providers currently offer loans for these criteria.
Name Product Product Description Min Loan Amount Max. Loan Amount Requirements
LoanBuilder, A PayPal Service Business Loans
Customizable loans with no origination fee for business owners in a hurry.
$5,000
$500,000
Annual business revenue of at least $42,000, at least 9 months in business, personal credit score of 550+.
GoKapital
Find the funding your business needs without the worry of meeting a minimum credit score.
$10,000
$5,000,000
Minimum of $10,000 average monthly revenue. At least four months of business bank account statements.
Diamond Business Loans
Grow your startup or cannabis business with a line of credit or fixed-term business loan.
$25,000
$150,000
Personal credit score of 680, no late payments or bankruptcies.
Green Leaf Money
Connects cannabis businesses with lenders willing to work with them across the country.
$25,000
$10,000,000
Documented income and records of your business spending and accounts.

Compare up to 4 providers

Am I eligible for Fundanna crowdfunding?

To be eligible for a Fundanna loan, you must own a startup in the cannabis space. You are not eligible if you are company outside of the US or an entrepreneur that already reports to the U.S. Security and Exchange Commission (SEC).

You are also ineligible if:

  • You own a company that is disqualified under Section 302(d) of the Jumpstart Our Business Startups (JOBS) Act and Rule 503.
  • You are an entrepreneur whose previous crowdfunding failed to comply with applicable annual reporting requirements during the two years prior to a new offering.
  • Your company has no specific business plan.
  • Your company’s sole business plan is to engage in a merger or acquisition with one or more other companies.

Is marijuana legal in my state?

Marijuana regulations by state

Many states have legalized marijuana in some form for medicinal purposes, recreational purposes and cultivation. However, federal law still classifies marijuana as a Schedule I drug, which complicates the ability for you to get a business loan for a cannabis-based business.

As of June 2017, marijuana is legal in some form in 28 states and the District of Columbia.

StatePossession limitPlant limitRecreational
Alaska1 oz3 mature, 3 immatureYes
Arizona2.5 oz12 plantsNo
Arkansas3 oz per 14 daysN/ANo
California8 oz6 mature, 12 immatureYes
Colorado2 oz3 mature, 3 immatureYes
Connecticut2.5 ozN/ANo
Delaware6 ozN/ANo
FloridaTBDN/ANo
Hawaii4 oz7 plantsNo
Illinois2.5 oz per 14 daysN/ANo
Maine2.5 oz6 plantsYes
Maryland30-day supply, TBDN/AYes
Massachusetts60-day supply, 10 ozN/ANo
Minnesota30-day, nonsmokableN/AYes
Montana1 oz4 plants, 12 seedlingsNo
Nevada2.5 oz12 plantsYes
New Hampshire2 oz per 10 daysN/ANo
New Jersey2 ozN/ANo
New York30-day, nonsmokableN/ANo
North Dakota3 oz per 14 daysN/ANo
Ohio90-day supply TBDN/ANo
Oregon24 oz6 mature, 18 immatureNo
Pennsylvania30-day supplyN/ANo
Rhode Island2.5 oz12 plantsNo
Vermont2 oz2 mature, 7 immatureNo
Washington8 oz6 plantsYes
Washington, DC2 oz driedN/AYes
West Virginia30-day supply TBDN/AYes

How do I apply for Fundanna equity crowdfunding?

Companies can get listed on Fundanna in fewer than 10 days by following four steps:

1. Create an account and offering. Describe your business, what it offers and the problems it addresses.
2. Make a pitch. Create a video for your investors.
3. File with EDGAR. Submit required forms with the SEC’s Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system.
4. Sign up with a stock transfer agent or share registry. This step is only required if you’re looking to raise $100,000 or more.

What do I need to apply?

When you create your Fundanna account, be ready to supply:

  • Pictures of your product.
  • Your company’s valuation.
  • Your personal and business contact information.
  • The amount of equity you’re offering in exchange for funding.
  • The price per company share, if available.
  • The minimum share an investor can buy.

My offering is on Fundanna. Now what?

You’re listed on Fundanna and on your way to getting the capital you need to grow your cannabis business. You’ll have a better chance of getting the funding you require by promoting your offering.

  • Share your page. Use social media and personal contacts to attract investors.
  • Reach out to investors. Keep potential funders informed and engaged, and they will help promote your product.
  • Provide feedback. Answer questions from potential investors quickly and thoroughly.
  • Contact customer service. If you require support with your offering, you can contact support via phone, email or live chat.

Bottom line

It can be difficult to secure funding for your cannabis-based business, but Fundanna is among the alternatives to bank loans that could help you start up or expand your business.

That it’s a newer crowdfunding portal may require a leap of faith — and giving up future equity in your company to get it up off the ground.

Frequently asked questions about Fundanna

Aliyyah Camp

Aliyyah Camp is a publisher for finder.com helping folks compare personal, student, car and business loans. When she's not helping people with their personal finances, you can find her going for runs outdoors.

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