Wefunder - Company Overview - Reg CF, and Wefunder Fees


Wefunder

Equity crowdfunding is now more accessible and less complicated, thanks to recent changes that SEC introduced. This, along with the added challenge of Coronavirus pandemic for startups looking to capitalize their launch, has driven many businesses to crowdfunding platforms. Wefunder is one such platform that has gained a lot of popularity over the years. It specializes in crowdfunding Reg CF only strategy.

Company Overview


Established in 2011, Wefunder is a popular crowdfunding platform that has aided in the creation and implementation of the JOBS Act and became one of the top platforms in the world of crowdfunding. Wefunder links investors with startup businesses. There are virtually endless startups to invest in and a wide range of investment types. Wefunder is great for startups and founders looking to raise considerable capital without worrying about costly fees. The platform is also suitable for investors – both accredited and non-accredited – who want to invest in private companies. Some of the industries Wefunder has become involved in include biotech, entertainment, beverages, retail, healthcare, technology, etc.

How it Works

Wefunder works as a hub for both investors and startup owners. You can make money on the platform by either raising capital from the crowd or simply investing in startups and earning a return. If you are raising capital via Wefunder and you are doing it with crowdfunding Reg CF only, you can raise from $50k to $5 million. The other method, investing in startups, is also a great option. You can start investing in your favorite startups listed on the platform with a minimum amount of $100. There are a wide range of startups in robotics, tech, film, art, engineering, education, and other industries. Wefunder allows you to filter the types of companies that you see on your dashboard.

Features

Wefunder’s website is user-friendly, easy to navigate, and full of information on how everything works. The platform offers a great amount of support for business owners. When you sign up on the platform and create your campaign, Wefunder will analyze it and give you sound advice. After you start your campaign, the platform will help you market it (when you get enough investors). Once you have been funded, the platform will allow you to use its proprietary tool to easily take care of yearly reports for investors. It will also take care of disbursing repayments or dividends, basic investor relations, and more. Throughout the process, Wefunder will provide you access to a useful legal library that is full of documents and forms you will need to keep your business and your campaign on the SEC’s good side. Wefunder also has a mobile app. It is available for both Android and iOS platforms.

Fees

Signing up on Wefunder is totally free and there is no upfront fee for starting a campaign. The platform charges a specific percentage for successful campaigns. Its fees vary from 5-20% depending on the regulation class of the campaign. That percentage is always disclosed. The minimum amount of investment on Wefunder is $100, and fees can range from 2-3.5% depending on the method you used for payment.

Pros and Cons

Pros

Available to high-net-worth and non-high-net-worth investors and only requires $100 minimum investment to begin.

User-friendly website design, filled with lots of useful information. If you contribute certain amounts, you get investment rewards.

International investing available (except for investors in Alberta, Ontario, Quebec).

You have the option to invest in non-traditional and alternative investments.

Cons

Not suitable for risk-averse or short-term investors.

Information on potential investments can be unreliable.

Due diligence process is less rigorous as compared to other crowdfunding Reg CF only platforms.

Track Record

If you are interested in signing up on Wefunder and you are wondering if the platform has been successful in its endeavors thus far, then you will be glad to know that the answer is ‘yes’. Wefunder demonstrates the scope of its reach and influence by providing all the relevant statistics. Since its inception, Wefunder has raised over $5 billion in capital for startups, created over 20,082 jobs, helped invest over $300 million, and funded over 1,551 founders. In conclusion, Wefunder is no doubt one of the best startup crowdfunding platforms. It offers you an opportunity to invest in startups and become a shareholder owning equity. However, keep in mind that there are risks involved in this type of investment. If you invest in startups that ultimately fail to succeed, it is likely that you will lose your money. So, it is recommended that you approach with caution and don’t invest more than you can afford to lose.   

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