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Fundanna cannabis business equity crowdfunding review
Crowdfunding can connect you with investors interested in funding your cannabis business.
- Best for avoiding high interest rates charged by nontraditional lenders.
- Pick something else if you don’t want to sell shares of your business.
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Details
| Min. Amount | $10,000 |
|---|---|
| Max. Amount | $1,070,000 |
| Min. Credit Score | 400 |
| Requirements | Must 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 unaccredited investors from around the world. Unlike other crowdsourcing platforms, Fundanna specializes in serving startup cannabis businesses.
Because federal laws list cannabis 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 of equity you sell depends on the value of your company and the amount you want to raise.
Is Fundanna legit?
Yes, Fundanna is a legit crowdfunding service that helps businesses in the cannabis industry connect with investors. Its website is secured with SSL encryption, and its privacy policy covers the standard ways it uses your personal information. While it may be used for marketing purposes, Fundanna and truCrowd will not sell your your information to any third parties.
How much will this financing cost me?
Fundanna charges a nonrefundable listing fee of $3,500 when you create a listing on its website. If your crowdfunding campaign is successful, your business will pay a 12% success fee — with the initial listing fee subtracted from the final amount.
For example, if your business raises $100,000, Fundanna will collect $8,500 — the $12,000 success fee minus the $3,500 listing fee.
You can raise between $10,000 to $1 million every year. No matter how much you raise, the fees will be the same. In addition to the listing and success fees, your business will also need to pay for a “bad actor” check: $45 for a US-based entity or resident, $100 for an international person or $160 for an international entity.
How Fundanna works
Your business will create an account with Fundanna and work with its marketing team to develop a pitch. You will need to promote it in your social networks to acquire investors and raise funds. Once your campaign is fully funded, you will need to prepare share certificates. Fundanna will verify the investments you raised and release your funds to you, minus the success fee.
If your campaign doesn’t receive the full amount of funding your requested, your offering will expire. the funds you raised will be returned to investors.
What do I need to qualify?
Fundanna only has one strict requirement for businesses: They must be a startup in the cannabis industry. You are not eligible if your company is based outside of the US or you are 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.
What information do I need to apply?
When you create your Fundanna account, be ready to supply the following information:
- 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
What industries does Fundanna work with?
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 legal.
Pros and cons
Fundanna doesn’t require you to pay back what you raise, but you’ll pay a hefty set of fees even if your campaign isn’t successful.
- Clear campaign creation process
- No interest or repayment required
- Advertising and promotion support
- Nonrefundable listing fee of $3,500
- Success fee is 12% of money raised
- No customer reviews
See other top business loan options
To see other loans your business may be eligible for, select your loan amount, annual revenue, time in business and personal credit score. Then click Show Loans.
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Fundanna reviews and complaints
| BBB accredited | No |
|---|---|
| BBB rating | C+ |
| BBB customer complaints | 1 customer complaints |
| Customer reviews verified as of | 14 October 2019 |
Fundanna doesn’t have a Trustpilot page, and its BBB page only has one unanswered complaint from an investor. Because of this, it’s not possible to gauge how well others’ crowdfunding efforts have been or if Fundanna is a useful service when you’re looking to raise money for your cannabis startup.
How do I apply for Fundanna equity crowdfunding?
Companies can get listed on Fundanna in fewer than 10 days by following four steps:
- Visit Fundanna’s website and create an account.
- Create an offering by filling out Fundanna’s full form on your account page, including the share value and timeline.
- Upload photos or videos to back your campaign.
- Work with Fundanna marketing experts to refine your campaign and get it live.
What happens after I apply?
Fundanna will work with your business to appraise it and help you determine the value of your startup and the capital you need.
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.
The offering will simply expire. All accepted pledges will be released to the investors and returned to their bank account via ACH.
Fundanna is among the best alternatives to bank loans that could help you start up or expand your business. For more options, see our guide to cannabis crowdfunding.
Frequently asked questions about Fundanna
Review by
Aliyyah Camp
aliyyah.camp@finder.comAliyyah Camp is a writer and personal finance blogger who helps readers compare personal, student, car and business loans. Aliyyah earned a BA in communication from the University of Pennsylvania and is based in New York, where she enjoys movies and running outdoors.
Expert review
Fundanna offers cannabis-based businesses a simple way to crowdfund — without going through a traditional bank. It also offers support through marketing experts to help your campaign grow. And you can raise up to $1 million on its platform by selling equity to investors.
But no matter how much you raise, Fundanna requires you to pay a 12% success fee. There are no customer reviews on Trustpilot or its BBB page, and if your campaign isn’t successful, you won’t receive any of the funds you raised.
Before you get started, compare other funding options for your business.