What is Wefunder? Wefunder is a crowdfunding platform that brings private equity investment to the masses. Investors have access to startup companies and can decide whether they plan on investing time, money, or both in return for dividends from either debt repayment, equity participation, or other investment structures. Unlike Kickstarter, which only requires three months of funding before it’s complete, investors should be prepared for long-term investments with Wefunder as well – five years at least (possibly ten).
Wefunder is your one-stop-shop for startup and private company capital. It’s also a good option if you’re looking to invest in an accredited or non-accredited venture of any sort. Wefunder funds people from all kinds of industries – biotech, entertainment, beverages, retail health care technology, etc., so their platform is developed with all types of entrepreneurs in mind.
The Wefunder platform, as it exists today, is a crowdfunding and equity portal for startups. It had helped small companies raise $319 million since 2016 when the Securities and Exchange Commission passed their Regulation Crowdfunding law to allow eligible private firms to sell securities via crowdfunding. But Wefunder wants more than just returns on investments; they are inviting investors “to join the movement of fixing capitalism” by letting people invest small amounts (over $100) in early-stage startups that may never receive funding otherwise. To gain in-depth knowledge about Wefunding, continue reading the article “What is Wefunder?”.
How does Wefunder work?
To know about what is wefunder, learn how Wefunder it works:
Wefunder is a crowdfunding platform that works as a hub for investors and startup owners. You can make money on the platform by raising capital from the crowd or simply investing in startups, earning equity over time. If you are doing it with Reg CF only, you can grow up to $5 million with Wefunder’s services! In addition, there are many types of companies listed on Wefunder – robotics companies like Roomba, tech giants such as Facebook (and not just any kind of social network), film studios like Pixar. This list goes on and on! As for filters? That’s pretty simple: take your pick from startups already listed or search through all the entries that might interest you today.
Wefunder: Best For
- Investors who want access to private markets without significant capital.
- Entrepreneurs looking for alternative sources of capital
- Entrepreneurs who cannot pitch to venture capitalists
- People looking for high risk, high reward investments
- People wanting ownership at the ground level
- Individuals seeking local investment opportunities
- Investors with a very long time horizon
- Risk tolerant investors
- An investor with an extremely long time horizon.
Pros and Cons
- It is the most attractive crowdfunding platform for founders, investors, and professionals. It has a clean interface.
- The company-wide $100 minimum ensures that you never have to worry about competition with other entrepreneurs – it’s all on them.
- As long as you live in a country where Wefunder operates (which is pretty much everywhere except Quebec, Ontario, or Alberta), you can invest with confidence, knowing that your investment will not go unnoticed by the team at Wefunder!
- You also get investment rewards by contributing specific amounts of money towards an entrepreneur’s campaign.
- Every investor has a stake in the success of their project because they’ll even get rewarded if someone else contributes more than them.
- It’s not funding for short or risk-averse investors.
- The due diligence process isn’t as rigorous as some others out there.
- Startup investing is riskier than other investments on the platform, but it also can potentially be more lucrative in the long run.
Wefunder’s website is user-friendly and easy to navigate. It is full of information on how everything works. The platform offers a lot of support for business owners who want to launch their campaigns with their help. When you sign up on the platform and create your campaign, they will analyze it for sound advice beneficial when launching your product or service, including marketing and legal aspects like an SEC compliance form library and essential investor relations tools. Throughout the process, Wefunder provides access to helpful documents such as a valid legal library that contains necessary forms related to running a successful company: from what needs to be disclosed on financial statements through annual reports; filings required by law; acquiring financing including loans from investors or banks; depositing funds into accounts while the company is going public (if applicable); keeping everything accurate all year long-and more! On top of this great idea is another great feature included in Wefunder’s mobile app: campaigns are always open during busy times, so entrepreneurs don’t have time “wasted” waiting around between work hours/days!
Wefunder is a crowdfunding platform that charges two fees for companies raising capital on the site. The first fee structure charges 7.5% of what you grow in Pre-seed through Series A funding. Still, any rounds after that are charged flat fees – $375,000 per round raised by pre-seed to series A level – where Wefunder matches the competition’s pricing and doesn’t charge anything until a company starts fundraising. This means no matter who your competitor is on Wefunder; they will pay more than eight times less!
Wefunders’ “highly competitive” pricing plans are due to their majority share in regulation crowdfunding, giving them an advantage over competitors.
Note if you are running a crowdfunding campaign on Wefunder, note that Wefunder campaigns are all-or-nothing. You will only receive funds if your project is funded or you meet the fundraising goal set by the campaign.
Terms and Conditions
What is Wefunder, and the terms and conditions of using it are explained here:
They are not a formal investment company, but Wefunder does screen for signs of fraud and takes a light-hand approach to consider who can use their platform. Though they recommend having an experienced investor endorse your campaign and set the terms of your crowdfunding campaign, this is not a requirement. They don’t take themselves too seriously regarding screening companies that can use their service; however, it’s essential you know what types of businesses they do or don’t fund before deciding if you want to work with them! They state they don’t support porn, gambling, or investment companies while also saying they don’t fund banks. Read the terms of service here.
Customer Service and Technical Support
Wefunder has a detailed and concise set of FAQs, with each question having an answer that is just as long.The website answers questions like “what is Wefunder,” “how does it work,” and other related queries. The support page on their website also includes details like contacting them by email(firstname.lastname@example.org) and social media accounts available for further questions or assistance. You can also call them at (917) 413-3700×146 for customer support. Beyond the FAQs they offer, there isn’t much else you can do when trying to get in touch with Wefunder – but at least they provide a live chat option, so it’s not too tricky!
When it comes to equity crowdfunding, Wefunder is king. It’s the top player in its field and has half the market share because it knows how to launch campaigns well. And with its low investment minimums (they go as high as $100), they’re able to gather enough capital from small investors who are eager for returns on their investments!
Talking about the negative reviews, Wefunder is not precisely a curatorial platform, and it gives more leeway to companies that are willing to take on some risk to grow. However, this approach also carries the potential for fraud, just like any other type of equity crowdfunding site. While being open about this creates more significant risks for investors, campaigners may welcome it by gaining access through Wefunder’s much larger pool of investors than SeedInvest(competitor). Reading consumer reviews is beneficial as it provides in-depth knowledge about the question “what is Wefunder.”
For Investors: Wefunder.com is a site that offers investors all sorts of opportunities to invest in startups from various industries. They offer information about each startup, and it can help you make the best investment decision for your portfolio – whether or not it goes up in value or down to zero! Wefunder regulates the site by nearly 1,000 pages of SEC and FINRA regulations, so there is no fraud involved when investing in this website. Your money gets held escrowed by a 3rd party bank before being released once funding rounds have been completed successfully. To learn more about “what is Wefunder” and how Wefunder is useful for investors click here.
For Entrepreneurs/Companies: At Wefunder, you can access millions of angel investors who share your vision. There are different ways to set up your funding round and raise different amounts of capital. You can submit an initial seed round or sign up now so that we have all the legal documents ready for you in less than 15 minutes! Before committing time and money to drafting contracts with a professional investor, test the waters by gauging interest through an “ask-me” page. Once interested individuals show their demand for investing funds in your company’s future success, enter into a SAFE agreement during which some angel investors buy equity at scheduled pricing points instead of setting specific valuations with professionals first.
The Wefunder app is exceptionally well organized and laid out, offering a ton of information without cluttering your screen. The app has almost no glitches or jumps in the navigation, and every page transition is smooth. All the industry filters, sorting options, search bars are all placed at the top of the exploring page with little to no hassle when using them. The main content on the explore page is sorted in trending order by default, including company cards containing company names, photo descriptions, 1-sentence summary financials, and relevant business info for management teams that you can click through from the new site. The app also has a pitch video investor panel that leads investors to note the funding round and any downloads like Pitch Deck/Highlights. Best part? You can invest directly from this APP!
Wefunder vs. Competitors
|Fees||2% of initial investment. 3.5% if using a credit card.||2%||0%|
|Investment Choices||Startups||Startups||Startups, real estate, video games, crypto|
Wefunder, SeedInvest, and Republic are all crowdfunding and startup investing platforms, but each platform’s minimums, fees, and investment choices vary. For example, Wefunder does not have to pay a fee for credit card transactions; however, it also has a lower minimum investment amount of $50. On the other hand, to invest at SeedInvest, you will need at least $500, higher than both platforms’ standards (Wefunder -$50).
If you’re looking for risk-free investments, then try Republic with their company-wide minimalistic requirements of just $10! Wefunder is a private investment service that provides the potential for much more substantial returns than public companies and real estate. The fact that it’s inherently riskier makes Wefunder an attractive option only to investors who are willing to take on more significant risks but with potentially bigger rewards.
We recommend that you read through each option thoroughly to see which one is a good fit first!
What is the Difference Between Wefunder and a Stock Market?
What is Wefunder? Wefunder is a crowdfunding website for new companies and independent ventures. In contrast to the NASDAQ, Wefunder is not for public businesses or established companies with fully-formed products. What’s the difference? Wefunder offers numerous small projects that are relatively unknown in their beginning stages instead of one big project that could fail on you if it doesn’t succeed, then as an IPO would do. With Wefunder, your money will be used more efficiently than any other investment because of Wefunder’s large number of small investments compared to a few larger ones where most gains are won or lost all at once. It would help if you held out until you see some significant actions taken by those who have invested; this makes them feel successful even before they see a return from their initial investment. Many people give up early when there isn’t significant progress made yet over time.
What is Wefunder and is Wefunder right for you? Wefunder is not for safe players. The website is full of disclaimers that investing in early-stage startups is riskier than the stock market, and there’s a genuine potential of losing all your investment. Moreover, Wefunder describes assets on its platform as more binary than stocks: status quo can vary over time while startups typically see success or failure. So if you are new to investing, it may be best to take a more traditional approach as your first step into markets like this one- but keep in mind that it will take up to 7 years before you’ll get back some returns! But if you’ve already got an established investment portfolio and are looking for ways to diversify long-term savings using private equity firms such as Wefunder? It might just be worth giving them a try!
If you are trying to find an excellent opportunity to invest, Wefunder could be the place for you. You’ll get access to all kinds of companies and causes that want funding from investors like yourself! There are also some similarities with Kickstarter: if your investment is successful, an investor will often see returns on their money.