Wefunder

Wefunder is one of the largest equity crowdfunding platforms in the United States, designed to help startups raise capital from their customers and community. It pioneered the concept of the "Community Round," allowing founders to turn their fans into shareholders. Investors can browse a wide range of industries, from local breweries and tech startups to biotech and movies.

The platform democratizes venture capital by allowing investments as low as $100. Wefunder structures many of its deals using a lead investor model, where a professional investor negotiates the terms, and the crowd follows on the same terms. This provides a layer of protection and validation for retail investors. It is a legitimate, SEC-regulated funding portal.

Frequently Asked Questions

1. Is it risky?

Yes, startups are high-risk investments; you should only invest money you can afford to lose.

2. specific minimum investment?

The minimum is set by the startup, but it is frequently as low as $100.

3. How do I make a return?

You make money if the company goes public (IPO), is acquired, or pays dividends.

4. Do I become a shareholder?

Yes, you receive equity in the company, often held through a special purpose vehicle (SPV) or custodian.

5. specific investor fees?

Wefunder charges investors a small transaction fee (typically 2%) to cover operating costs.