What is Wefunder? - Wefunder (2024)

FAQs

Do you make money on Wefunder? ›

If you invest through a WeFund, you will hold an interest in the WeFund instead of holding the company's securities directly. We will manage and sell the company's securities on your behalf, and distribute any proceeds to you upon such a sale.

Yes. You can change your mind anytime up until 48 hours before your funds are transferred to the company that you are investing in and you will receive a full refund, including any fees.

You can think of us as “Kickstarter for investing.” Unlike Kickstarter, you are not buying a product or donating to an artist. Instead, you are investing in a business hoping to earn a return on your investment. You decide which companies are worthy of funding. If the business does well, you may make money.

Our Take. The bottom line: Wefunder makes it possible for the general public to invest in early-stage startups for as little as $100 by joining an investment round directed by one of the company's experienced Lead Investors. But the very nature of the investments on its platform — startups — remain inherently risky.

We know you might be hesitant to provide this information, but we guard your SSN like our life depends on it. We encrypt and store Social Security Numbers (SSNs) on a separate group of servers from wefunder.com.

Do You Pay Back Crowdfunding? For crowdfunding that operates on a donation basis, the company does not need to pay back investors. However many companies offer incentives for early backers such as an advance copy of the product.

For payments made by bank ACH, wires, or checks, Wefunder charges investors a transaction fee of 2%, with a minimum of $8 and a max of $150. For credit cards, Apple Pay, or Google Pay, Wefunder charges a 5.5% fee + $2, with a minimum of $10 and no maximum - per transaction.

Wefunder supports 3 different ways to legally raise funding from investors in all 50 states under federal law: Regulation Crowdfunding, Regulation D Rule 506, and Regulation A+.

WEFUNDER IS NOT A "BROKER," "DEALER" OR "FUNDING PORTAL" (AS DEFINED IN SECTION 3(A) OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED).

The best investment crowdfunding offers several advantages and disadvantages for investors and those raising capital. For investors, benefits include starting with a small amount, potentially earning above-average returns, and gaining more investment transparency.

How much does it cost to raise on Wefunder? ›

It's free to create a company profile on Wefunder.

For Reg CF, Wefunder charges only 7.9% of the total raise if successful. For instance, if a company raises $100,000, we charge $7,900 upon close. We charge no upfront fees. After the successful raise, a company can choose to file their annual report with us for $500.

Some of the more basic funds have minimums as low as $10, but for platforms that connect investors with individual real estate deals, minimums can range between $5,000 and $200,000, with $25,000 being a commonly used minimum investment amount.

The amount you may earn depends on the type of investment contract the company offers. There are four classes on Wefunder: Debt. Some local businesses offer a simple loan or revenue share.

When you cancel your investment or a Community Round fails, a refund, including fees, will automatically be sent back to the bank account or credit card used to invest. If you send a check or a wire, your money will be refunded to your Wefunder Cash account.

In return, crowdfunding platforms are expected to provide a secure and easy to use service. Many platforms operate an all-or-nothing funding model. This means that if you reach your target you get the money and if you don't, everybody gets their money back – no hard feelings and no financial loss.