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.
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.)
Co-Founder, VP of Engineering
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. …