Wefunder is a platform that allows startups to connect with investors. Launched in 2016, the Wefunder platform allows investors to view startups and rate their performance. The site is an Instagram-like news feed for startup founders (featuring influencers from TechCrunch). The minimum investment is $100, and the fees range from 2% to 3.5%, depending on the payment method. If you start with Wefunder’s free plan, you’ll also have to pay 7.5% of the amount you raise. Learn more. Read through this article to get a complete Wefunder review.
Following the Securities and Exchange Commission’s passage of the Regulation Crowdfunding Act, which allows eligible small private companies to sell securities through crowdfunding, this platform has since helped raise more than $319 million. Keep in mind that investing comes with risks, such as repaying debt or equity investment, or dividends on investment structures. Nevertheless, long-term investments should be planned, but it depends on how many years they are invested over their lifetime!
Wefunder is a crowdfunding platform that allows investors to invest small amounts of money in early-stage startups. Wefunder claims to be the largest platform of its kind by 2020, with over $1 billion raised through investments on Wefunder. As part of the “movement to correct capitalism,” Wefunder wants investors using its platform to participate in taking control away from big corporate interests and help fund tech startups and other innovative companies at an earlier stage than ever before.
Services Offered
Wefunder is a platform that connects US companies and LLCs with 658,948 registered investors on the site. The one-time cost to create a profile is free, and there are only fees if you successfully raise funds. In addition to Regulation Crowdfunding, we can also launch Reg D campaigns, Rule 506b, or A+ campaigns through Wefunder. These campaigns have less mass appeal than Regulation Crowdfunding but can be used later in the lifecycle of companies as they approach their investment goals and seek to raise to $50 million publicly; these terms of investment only apply to accredited investors.
Wefunder Review
Wefunder is a platform that allows individuals to invest in startups. While there is no minimum investment amount, individual startups can set their minimum investments. Wefunder charges a fee of 2% of the initial investment for Regulation Crowdfunding (3.5% if using a credit card) with an initial maximum fee of $8 and an additional maximum fee of $100 for each company that site users invest in.
Wefunder features you should know about
Wefunder is a crowdfunding platform for startups. Click here to know more about the different ways to finance your startup. You can purchase investments in them via bank transfer, check, credit card, or wire transfer. There is no minimum amount for your account, and your money is held in escrow until it is transferred to the startup’s funding project.
Lead investors: At Wefunder, lead investors are individuals who have vetted startups seeking funding and investing on the startup’s terms. They provide advice, connections, and mentoring to help the company grow. Investors earn a share of the company’s profits, so they have an incentive to see the company thrive by investing in specific companies that you can find on our platform through their investments or simply as a consumer! These lead investors are also visible to any other businesses they choose to invest in – there’s no guarantee that every company will have a lead investor, but it does not hurt if you do not find one either!
Different investment structures: Wefunder is an investment platform that provides access to different types of investments depending on how much each offer allows. These restrictions are made by the company’s SEC and fundraising structures. For example, Regulation D offers options to accredited investors who have no limits on how much they can invest. Reg A+ offerings with non-accredited investors can support up to 10% of their income or net worth (whichever is greater) per year in that company alone.
Diverse Investment Options: Wefunder offers various investment opportunities, with categories such as alcohol, infrastructure, and more. You can search the database by category (everything from “local” to “debt”) and sort by companies that have already closed their funding round or are currently in one. The site also lets you track how many people have invested so far if they are trending investments.
Referral Program: Wefunder runs a referral program where the investor receives $1,000 for referring someone for funding on Wefunder.
Social Platform: investors have access to a feed of photos and updates from participating startups that you can connect with for direct investment opportunities. This is a great way to learn more about early-stage investing, different types of investment structures, and the personality traits that best fit your goals. It’s worth noting that Wefunder does not endorse any companies on its website or social media accounts.
Investment Portfolio: Wefunder provides you with an easy-to-use and secure platform where you can invest in companies, real estate, small businesses, or even crowdfunding projects. Each industry has its folder where you can track investments and associated fees. You can also see what actions need to be taken when the status of your investment changes, such as when due diligence is required or when you receive updates on the progress of a project.
Ways to invest with Wefunder
Investing in startups can be challenging but according to our Wefunder review, we found that Wefunder makes it easy. For a minimum investment of $100, you have the option to invest in your favorite startup listed on the website. However, suppose you invest more money in the Wefunder platform, then in that case, you’ll receive additional perks in terms of both discounts on products and services offered by supported companies (like Cava Health). This provides access to exclusive opportunities only available to high-level investors, like purchasing testing units at discounted prices or testing new product lines before anyone else does!
Investment Opportunities at Wefunder:
Investing in Startups
You only need to invest a minimum of $100 in participating in this service. However, if you spend more, many rewards await you, such as 10% discount coupons after $500 investment and 15% discount coupons after 1K investment, among other incentives, including 40% discount coupons after 5K investment. Learn more.
Investment Restrictions
Investment limits are set by the Securities and Exchange Commission (SEC) for various regulations. Wefunder makes these limits easier to understand with our new listing of rules:
– For all investors, you can invest at least $2,200.
If your net worth or income is under $107,000 per year, 5% less is allowed by law.
– If both your income and net worth are over $107,000 per year, you can legally invest 10% or less in a crowdfunding offering from Wefunder.
Raise funding
Wefunder is an investment app that provides startups with a fundraising platform. The startup has to fork out 7.5% of the funds raised at the end of its campaign. However, if it raises more significant amounts of money from investors, the founders will not be charged any fees while raising money on Wefunder.
If a startup manages to attract angel investors who contribute at least $25,000 to the campaign, they only have to pay 5%. Learn more.
Educational Resources
Wefunder offers educational resources and a list of startups to help startup investors better understand the process. Several videos on various topics show you how to invest responsibly. We also have an investor program that gives authority to investors who can best answer questions or provide insight on specific investments.
Wefunder review
Advantages
– Provides access to early-stage startups.
– Receive investment rewards when you deposit a certain amount.
– Available to international investors and founders of companies seeking private equity funding, previously unavailable to international investors as Wefunder required a minimum of $25,000 before deciding whether or not to waive fees on behalf of the founder.
Disadvantages
– The disadvantages of investing in this cryptocurrency are:
– It is a relatively new platform; there is little historical data on potential investments and the high-risk factor.
– The risks associated with investing in this particular cryptocurrency are not for those seeking short-term gains or those looking to take less risk.
Wefunder review – User reviews
Negative Reviews & Complaints
One reviewer noted that Wefunder does not take a “curatorial approach” when deciding who gets to use its platform and instead lets virtually any company fundraise without checking for signs of fraud. This is a departure from practices like SeedInvest, which boasts of only allowing 1% of companies applying to raise money on its site. While this poses a greater risk to investors regarding potential fraud, activists may welcome this as they are not subject to the same restrictions.
Positive reviews & testimonials
The few reviews of Wefunder are pretty positive. The low minimum investment amount (only $100!) is seen as a way to attract the most significant possible number of investors to your campaign. And with unprecedented success in the industry, Wefunder is an equity crowdfunding platform that packs a punch – it has half the market share!
Wefunder Review – Customer comments
“The closest thing we received from a business owner was a comment from a business owner’s friend saying that his friend’s business raised $300,000 through Wefunder. Nice, but not particularly informative.
It’s worth reading the investor comments, though. Unfortunately, we mainly saw negative comments from investors. Some were (understandably) frustrated that they had made an investment and then never heard from the startup again. Similarly, we have seen some comments where they were disappointed with their investments’ (lack of) returns.
None of these criticisms should stop you from using Wefunder (especially since you’ll find similar comments on most crowdfunding platforms) – but you might want to keep them in mind when running your campaign and to communicate with investors. After all, you do not want to be the next startup that Wefunder investors complain about.”
Hopefully this Wefunder review helped you, click here to learn more about such platforms.
