Wefunder Review for Investors

Wefunder is a crowdfunding platform that allows anyone to invest in startups and small businesses, with a minimum investment of just $100.

It's free to join Wefunder, and you don't need to be an accredited investor to participate.

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Wefunder is a crowdfunding platform that allows anyone to invest in startups.

It was founded in 2012 by Nick Tommarello and Mike Norman.

Wefunder is registered with the Securities and Exchange Commission (SEC) as a funding portal.

It allows startups to raise money from a large number of small investors.

Wefunder's fees are based on a sliding scale, with startups paying 0-10% of the funds raised.

Startups can use Wefunder to raise up to $1.07 million per year, or $2.2 million over a lifetime.

Wefunder has helped over 100 startups raise over $200 million.

It has a user-friendly platform that makes it easy for startups to create a profile and share it with potential investors.

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WeFunder's customer support is truly exceptional, with prompt and friendly communications that make resolving issues a breeze.

Their support team is genuinely invested in helping investors, which is reflected in their proactive approach to resolving issues.

One of the standout features of WeFunder is its ease of use, particularly for small and non-US resident investors who can sign up with relative ease compared to other sites.

WeFunder's commitment to making investing accessible to all is evident in its efforts to change laws and regulations to benefit non-angel investors.

Their dedication to this cause is a major draw for investors who value social responsibility alongside financial returns.

WeFunder has had a significant number of portfolio exits, with 18 companies successfully exiting their portfolios.

The latest portfolio exit was Raise Green, which was acquired by Honeycomb Credit for an undisclosed valuation of $XXM on December 3, 2024.

StackSource was acquired by Max Benjamin Partners for an undisclosed valuation of $XXM on April 8, 2024.

Casetext was acquired by Thomson Reuters for an undisclosed valuation of $XXM on June 26, 2023.

WeFunder has a diverse range of portfolio exits, with companies in various stages of growth and development.

Here are some key details about WeFunder's portfolio exits:

You'll want to invest with a platform that truly cares about its customers. Wefunder's commitment to excellent customer service is evident in their prompt and clear responses to questions via email.

Their team is diligent in answering every query, no matter how many emails it takes. This dedication to customer support is a big plus for investors.

The results are timely and thorough responses that leave investors feeling confident and informed. This level of service is a testament to Wefunder's focus on building strong relationships with their investors.

Investors can expect to receive clear and concise answers to their questions, which is essential for making informed investment decisions.

WeFunder has earned a great reputation among small investors. They're known for their outstanding customer support, which is prompt and friendly in their communications.

One of the standout features of WeFunder is their ease of use for non-US resident investors. They make it simpler for these investors to sign up compared to other sites.

WeFunder's minimum investment amount was the lowest I could find when I started investing with them over a year ago. This made it more accessible to new investors.

Their values align with those of many investors, as they played a significant role in getting the law changed to allow non-angel investors to invest in startups.

WeFunder has a range of communication channels, including email, online chat, and phone. Their email support is particularly helpful, with responses usually provided within one business day.

Here are the ways to contact WeFunder:

WeFunder has a solid foundation, with 17 investors and a strong funding history.

A community round is not just about raising capital, it's about engaging a group of highly motivated and incentivized individuals to help you accomplish your goal and mission.

Raising $1M-$2M with a few checks from traditional investors is generally easier than raising $160k from 93 investors.

The amount of time and effort it takes to raise capital with a community round is a common concern, but the capital is not the point.

A community round is worth the work, as long as you have a plan.

A community round can come off as a bad signal if not done correctly, especially for venture-backed startups.

WeFunder's investment process is designed to be straightforward and accessible. Their minimum investment amount is low, making it easier for small investors to get started.

Their customer support is also noteworthy, with prompt and friendly communications that show a genuine effort to resolve issues.

WeFunder has raised a significant amount of money through various funding rounds. $26.38M has been raised over 19 rounds.

The company's latest funding round was a Series A - VI for $1.52M on November 1, 2024. This round was led by undisclosed investors.

WeFunder's funding rounds have been quite frequent, with several rounds taking place in 2022 and 2024. The company has received funding from both convertible notes and series A rounds.

Here's a breakdown of some of the funding rounds:

The company's valuation has also increased significantly over time. However, the exact valuation figures are not publicly disclosed.

WeFunder's revenue is currently undefined, as indicated by the "0FY undefined" notation. This suggests that the company's financial performance is not publicly disclosed.

The funding rounds have been sourced from various investors, with some rounds being led by undisclosed investors.

Fathom received a Series A investment of $17M on September 19, 2024, with Telescope Partners as co-investors.

The investment process involves various types of funding, including convertible notes and angel investments.

Netsave received a convertible note investment of $0.01M on June 1, 2024.

hobbyDB also received an angel investment of $0.77M on the same date.

Investors can choose to remain anonymous, as seen in the angel investments for "Subscribe to see more" companies, which had amounts of $XXM each on April 1, 2024.

Here are some details on the investments:

Deal Terms are a crucial part of the investment process, and understanding them is essential for investors.

The investment amount is typically determined by the deal's valuation, which can be influenced by factors such as the company's revenue growth, market size, and competitive landscape.

A common deal term is the equity stake, which can range from 10% to 50% of the company's ownership.

Investors often negotiate for a seat on the company's board of directors to ensure their interests are represented.

The investment process can be complex, but it's essential to have a clear understanding of the deal terms to make informed decisions.

WeFunder has been actively involved in acquiring companies, and one notable example is the Arora Project. They acquired Arora Project on May 27, 2021.

The acquisition details are as follows: Arora Project was acquired by WeFunder on May 27, 2021. The valuation of Arora Project at the time of acquisition was $XXM.

The acquisition was a significant milestone for WeFunder, and it's worth noting that the exact valuation of Arora Project is not publicly disclosed.

Wefunder's potential issues are worth considering, especially for investors. Wefunder's focus on small businesses and startups can lead to higher risk investments.

Some investors may be concerned about the lack of diversification in Wefunder's portfolio, as it is heavily weighted towards small businesses. This can be a problem if many of these businesses fail.

However, Wefunder's platform allows investors to diversify their portfolio by investing in multiple businesses at once.

Funding account issues can be frustrating, but they can be resolved with the right support. In one case, a user experienced two separate incidents of money being unable to be pulled from their bank account through the Wefunder platform.

The issues took a long time to resolve, but with diligent effort, they were eventually fixed. Merc, the Head of Investor Success at Wefunder, acknowledged the user's frustration and worked with them to resolve the issue.

The problem was caused by the bank denying the transaction, and it was eventually resolved after re-doing the account. Merc's email suggests that this approach may be a solution to similar issues in the future.

Wefunder is a growing company, and as such, it's not surprising that there are still some bugs to be worked out in the online system.

WeFunder's fees are not upfront, you have to dig into the FAQs to find out what they charge.

Investors have reported being misled by WeFunder's lack of transparency regarding their fees.

WeFunder claims their fees are clearly displayed throughout their website, but one investor found them only after searching the FAQs.

The investor's experience is a red flag, and it's essential to be aware of this potential issue before investing.

WeFunder's customer service has been described as horrible, with one investor struggling to get their money returned.

The investor's experience with WeFunder's customer service highlights the importance of being cautious when dealing with this company.

WeFunder claims to have a transparent fee structure, but their actions seem to contradict this statement.

The investor's funds were held in their Wefunder Cash account for several months before being refunded in September.

WeFunder's response to the investor's complaint seems to be more of a damage control measure rather than a genuine attempt to resolve the issue.

They can take your business, your customers, or even your employees. This can happen if you're not careful about protecting your intellectual property.

In the worst-case scenario, they might even take your entire company.

Donating to a campaign on Wefunder can lead to a lifetime of spam emails. I've seen this happen to a friend who donated once, several years ago, and has been bombarded with emails ever since.

Wefunder claims to not disclose personal information, including email addresses, to third parties. However, it's possible that a marketing partner hired by the founder has harvested investor emails and is sending them out.

The marketing partner may be using a "warm list" of active investors in the space, which they claim to have obtained from a legitimate source. However, this can lead to spamming that disregards user preferences and email spamming laws.

Wefunder's Head of Experience, Mark "Merc" Mercer, suggests that the problem lies with the marketing agencies that abuse the system, not the companies using their services. He proposes building better tools to match investors and founders, with more control for investors to opt-out.

Wefunder is working on features to address this issue, but in the meantime, it's essential to be aware of the potential consequences of donating to a campaign on their platform.

Flash Over Substance is a common issue in the world of equity crowdfunding. Companies may promise the world but fail to deliver, leaving investors high and dry.

Investors expect to be informed about the progress of companies they've invested in, but this isn't always the case. Companies like Fancy.com, which raised $460K on Wefunder, can ghost their investors without any updates.

Wefunder, a platform for equity crowdfunding, tries to make contact with companies that haven't followed through, but sometimes it's impossible to reach them. The platform will update its records to mark the company as failed, but investors need to consult with a tax professional to report their investment as failed.

Investments on Wefunder are high-risk, longer-term, and not immediately liquidating. This means investors need to be patient and understand the risks involved. The equity crowdfunding industry is highly regulated, but Wefunder doesn't get involved much further than providing the technology for companies to raise funds.

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Wefunder has democratized investing by allowing anyone to invest as little as $100 in startups and small businesses. This is a significant shift from traditional venture capital, where investments often require millions of dollars.

The platform has seen impressive growth, with over $100 million in investments made through Wefunder in just a few years. This growth is a testament to the demand for alternative investment options.

Wefunder's success has also led to the creation of new investment opportunities, with over 1,000 companies raising funds on the platform. This number is expected to continue growing as more investors and entrepreneurs discover the benefits of Wefunder.

Having a plan is crucial for a successful fundraising campaign. Fundraising is never easy, so don't believe anyone who says they've made it easy.

A clear set of objectives and goals is essential, as it helps you stay focused and motivated. For example, the author's team had a content plan, engagement plan, and clear objectives and goals before launching their Wefunder campaign.

Setting up funnels and processes for everything is a good idea, as it helps streamline your efforts and achieve your goals. The author's team did this, and it likely helped them stay organized and on track.

Identifying your goals and reasons for raising a community round is the first step in creating a plan. This will help you understand what you need to do to achieve your objectives.

Fundraising can be made more efficient and equitable, but it's still a lot of work. As the author notes, people have done a great job making fundraising more efficient, but no one has made it easy.

Collaborate with the team behind your crowdfunding platform. Wefunder did a better job selling its services than other options like Dalmore Group, SeedInvest, and Republic.

Do your own diligence on the teams and tools you'll be using, as capital is a highly tactical tool. The author had a great experience with Wefunder's team, but acknowledges that some founders may not get enough information about triggers and perks.

Reach out and ask questions to engage your team, whether it's Wefunder, Republic, or SeedInvest. This can help you learn about incentives and triggers to optimize your campaign.

Don't assume that the options in front of you are all that exist - make the ask to connect with the people behind the platform. The author's challenge to founders is to reach out and connect with the team, as they do great work.

The future of funding is transforming before our eyes. Capital now comes in many forms, including cryptocurrencies like Bitcoin.

People are starting to think about the future of capitalism and wealth creation, and it's clear that there's a sea change coming that prioritizes financial self-actualization and empowerment of the individual.

A community round is emerging as a tool to empower individuals with access to equity in a company they love, allowing founders to future-proof their companies.

Fairmint is a notable example of a company that's making a significant impact in this space, providing a platform for accredited investors to access equity in companies.

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Companies like Wefunder value customer feedback, as shown by their prompt responses to user reviews.

A good user experience (UX) is crucial, and Wefunder's homepage defaults to a section that may not interest every user, such as wefunder/discussions.

The company is open to suggestions, with the Head of Investor Success, Merc, passing along customer feedback to the product team for consideration.

Wefunder wants to provide great service to its users, as evident from Merc's invitation to reach out to them at [email protected].

It's clear that companies like Wefunder appreciate honest feedback and are willing to make changes based on user input.

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