---
title: How does Fundable work?
description: How does Fundable operate? In what way does Fundable assist startups? How does one use Fundable to raise capital?
---

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# How does Fundable work?

## How does Fundable operate? In what way does Fundable assist startups? How does one use Fundable to raise capital?

Fundable is a powerful fundraising platform designed to help companies effectively communicate their story and value proposition to potential investors. By leveraging Fundable, businesses can create a compelling profile, set fundraising terms, market their raise, and secure investor commitments.

---

### **Steps to Raising Money Using Fundable**

#### **1. Create a Profile**

To get started, businesses must create a Company Profile that provides a concise overview of their company, product or service, and funding goals. There are two options for profile creation:

- **DIY Approach:** Users can create their own profile.
- **Concierge Package:** Professional consultants, copywriters, and designers assist in crafting a strategic and visually appealing investment opportunity.

DIY profiles are reviewed by the Fundable team to ensure they are a good fit for the platform. If the profile does not meet the criteria, feedback is provided to make necessary adjustments.

---

#### **2. Set Fundraise Terms**

Most companies raise capital in exchange for **Equity** or **Debt**:

- **Equity:** Investors receive a share of stock in exchange for capital.
- **Debt:** Can be structured as a SAFE agreement, Debt, or Convertible Debt.

Companies should carefully consider the terms of their offering before proceeding.

---

#### **3. Market Your Fundraise**

Fundable provides tools to market fundraising campaigns effectively. Users can:

- Utilize the step-by-step **Profile Creation Wizard** to showcase their company.
- Share their campaign with **friends, family, colleagues, customers, and media** to increase visibility.
- Build relationships with journalists to secure media coverage, increasing exposure to potential investors.

Marketing a fundraise also provides secondary benefits, such as attracting new customers, engaging social media followers, and securing advocacy from media outlets.

---

#### **4. Proactive Outreach to Investors**

Before marketing a fundraise, companies should consult legal counsel to ensure compliance with [**SEC Regulations and General Solicitation**](https://help.startups.com/knowledge/fundable-equity-campaigns-sec-general-solicitation-infographic?hsLang=en) rules. This step helps avoid potential legal complications while reaching out to investors.

---

#### **5. Secure Investor Commitments**

Investors can view fundraising campaigns and commit funds directly through a company's Fundable profile. Key details:

- **Minimum investment commitment:** $1,000
- **Processing of funds:** Equity-based campaigns involve closing deals directly with investors (Fundable facilitates introductions, but legal and financial transactions happen outside the platform).

This guide serves as a quick overview of Fundable’s fundraising process. Users are encouraged to explore additional resources for in-depth guidance. 

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