What is Wefunder?
Wefunder is an equity crowdfunding platform launched in 2012 that allows startups and small businesses to raise funds from both accredited and non-accredited investors. It operates under Regulation Crowdfunding rules that were introduced in 2016 under the JOBS Act, which expanded access to early-stage capital for entrepreneurs.
Wefunder streamlines the process for startups and small businesses to raise funds through securities offerings like SAFEs and convertible notes. It handles all the SEC compliance and legal paperwork involved with issuing securities and allows companies to market their fundraising campaigns. Investors can browse startup profiles and invest directly on the Wefunder website.
Key features of Wefunder include investor access for both accredited and non-accredited investors, marketing tools and advice for startups raising funds, automated SEC filings and compliance, and portfolio management tools. Wefunder charges a platform fee on funds raised but does not take any equity from issuers. Over $200 million has been raised by hundreds of companies on Wefunder.
In summary, Wefunder is a leading equity crowdfunding platform that has helped democratize access to capital for early-stage startups and small businesses. It allows a wider pool of investors to fund private companies and has robust tools and resources both for issuers raising funds and investors looking to build a portfolio.