Wefunder

Wefunder is a crowdfunding platform that allows anyone to invest small amounts of capital in startups and early-stage companies. It is regulated under Title III of the JOBS Act, which legalized equity crowdfunding for non-accredited investors in the United States. Unlike traditional venture capital, which typically involves large investments from wealthy individuals and institutions, Wefunder enables ordinary people to become shareholders in companies they believe in, often with investments as low as $100.

Wefunder operates by providing a platform for startups to list their funding campaigns. These campaigns include information about the company, its team, its product or service, its financials, and the terms of the investment offered. Potential investors can review this information and decide whether to invest. The platform facilitates the transfer of funds from investors to the company in exchange for equity or other securities, typically under Regulation Crowdfunding (Reg CF).

One key aspect of Wefunder is its focus on community and shared ownership. Startups often use the platform not only to raise capital but also to build a community of engaged users and advocates. This can be particularly valuable for early-stage companies seeking to gain traction and build brand awareness.

The platform vets companies before allowing them to launch a campaign, but it is important to note that investing in startups is inherently risky. Investors should carefully research companies and understand the potential for loss before investing. Wefunder provides risk disclosures and educational resources to help investors make informed decisions.

Wefunder's revenue model typically involves taking a percentage of the funds successfully raised by companies on the platform.