Crowdfunding platform Fundable buys VC-backed LaunchRock

Business crowdfunding platform Fundable has acquired LaunchRock. No financial terms were disclosed. Based in Walnut, Calif., LaunchRock helps startups launch their businesses. Its backers include 500 Startups, Venture51, Quotidian Ventures and Trinity Ventures.

PRESS RELEASE

Columbus, Ohio (PRWEB) March 13, 2014
Fundable.com, a business crowdfunding platform, has acquired LaunchRock.com, a tool used by early stage startup companies and entrepreneurs preparing to launch their businesses. The combined companies will make it easier for entrepreneurs to create businesses, by connecting business ideas to business crowdfunding.
With the acquisition, Fundable will offer crowdfunding opportunities to 10 million users, including 500,000 startup companies, with 15,000 new company registrations each month. Wil Schroter, Founder and CEO of Fundable, explains, “we’ve quietly helped businesses crowdfund over $87 million in commitments and we’re excited to bring crowdfunding to entrepreneurs in the early stages of creating a business.”
12X Greater Than Kickstarter:
The average raise amount on Fundable is $175,000, which is 12 times the average raise amount on Kickstarter, the crowdfunding platform that recently announced $1 billion in crowdfunding commitments. Different from Kickstarter, Fundable is 100% dedicated to helping entrepreneurs create businesses. Successfully crowdfunded projects on Kickstarter and Indiegogo often turn to Fundable when they’re ready to create a scalable business. Techstar’s Ube, Cregle, and Uncharted Play all moved to Fundable to raise expansion capital.
The addition of crowdfunding also creates a powerful opportunity for current LaunchRock users. Founder Jameson Detweiler explains, “the most consistent request we’re getting from our startup companies is how to take the large followings they have created and turn that demand into a crowdfunding opportunity. The companies already have millions of followers who love their ideas. The next logical step is to turn them on to business crowdfunding, where Fundable is clearly the leader.”
The cash and stock deal includes the purchase of all of LaunchRock assets, as well as the addition of 42 prominent venture capital and angel investors including 500 Startups, Trinity Ventures, Venture51, and Quotidian Ventures. Fundable is privately funded by its founders. LaunchRock’s current employees will join the Fundable team.
Dave McClure, Founder of 500 Startups, who has served as an advisor and shareholder for both companies, said “Crowdfunding is taking off. 500 Startups is psyched to see companies like Fundable and LaunchRock work together to make it even more awesome.”
About Fundable:
Fundable.com is the largest business crowdfunding platform with over $87 million in commitments and exclusively dedicated to helping businesses. Different from any other crowdfunding platform, Fundable offers both rewards and equity business crowdfunding options. Founded by veteran entrepreneurs who have raised countless venture capital and angel investment rounds of financing, Fundable seeks to empower startups by providing access to early stage growth capital.
Key Facts:
Fundable.com has acquired Launchrock.com. Fundable is privately funded by its founders. Fundable has raised $87 million in crowdfunding commitments to businesses.
Fundable’s average raise amount is 12X greater than Kickstarter ($175,000 Fundable vs. $15,035 Kickstarter) . The top crowdfunded companies such as Techstar’s Ube, UnchartedPlay, and Cregle have all moved to Fundable to raise expansion capital after Kickstarter and Indiegogo.
Combined Fundable and LaunchRock will have:
10 million registered users
500,000 registered startups
15,000 new startups per month
2 million visitors per month
42 venture capital and angel investors join Fundable including 500 Startups, Trinity Ventures, and Quotidian Ventures

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