WeFunder

  • FoundedMarch 2012
  • HeadquartersUnited States
  • FundingBetween $1 - $10 million
  • Sector-FocusInternet
  • Stage-FocusSeed, Early
  • SecuritiesEquity

Snapshot

WeFunder is an equity crowdfunding platform for high-growth-potential startups. Per regulations it’s currently only open to accredited investors but it has plans to open to all investors, regardless wealth, upon the implementation of Title III of the JOBS Act, which it expects to happen around Fall 2014.

Founded in 201 2, it opened its marketplace to accredited investors in 2013 and has since funded 13 companies, accounting for $2M+ in funds raised.

Deal Flow

WeFunder focuses on high-growth-potential startups. Its marketplace is non-curated. Upon listing all issuers are placed into the “Haystack,” a listing area where certified investors can rate companies.

Based on these ratings WeFunder will then selectively feature issuers on its “Top Startups” page. Additionally, startups on the Top Startups page are rank-ordered by a scoring algorithm designed by WeFunder.

Investors do not invest directly into the issuer. Rather, they invest into a fund managed by WeFunder. Many other platforms also operate under this fund approach and it allows a large number of individual investors to be pooled into a single investment entity. (That way an issuer does’t have hundreds, potentially thousands, of individual investors on its cap table. It will only have one: the fund.)

Fee Structure

For Investors

  • Carried Interest 10%
  • Administration Fee $10-75 depending on the investment amount to cover the costs of operating the fund.

For Issuers

  • Admin Fee Between $2,000 – $4,000, dependent on the size of the raise, upon the successful close of a raise. This fee covers come of the cost of operating the fund.

Executive Team

Nick Tommarello

Co-Founder, CEO

Mike Norman

Co-Founder, President

Greg Belote

Co-Founder, VP of Engineering

Social

September 4, 2013

On September 23rd, for the first time in 80 years, startups will be advertising their fundraising to the public. Facebook ads, tweets, Techcrunch articles, a demo day live-streamed to the 8m+ accredited investors across the US – it’s a whole new world. …

© 2012 Open World Ventures LLC