It shouldn't be to make lots of money! This isn't the stock market. Startups are much riskier and more likely to fail.  Greed is a wrong reason to invest.

Of course, if you invest wisely, you can make money.  Our advice?  Invest only in what you understand (and preferably love). If you are a customer and love the product, it’s likely a good investment. If you don’t understand it, investing may be a bad idea. 

Investing should not be solely about earning a return. To invest in something as risky as a startup, you should feel something extra beyond just the business model.  For us, that “something extra” is the fulfillment we feel helping a founder take "their shot" at making our world slightly better. We also think it’s pretty cool to learn about different industries when we get updates from the founder.

As we like to say, nearly the entire American economy! That’s the fun part! We’ve funded tens of millions of dollars in startups like:
 

• Moonshots like flying cars, space telescopes, and fusion reactors
• Neighborhood businesses like cafés, restaurants, and breweries
• Software like mobile apps and online education
• Biotechnology, like glowing plants and researching cancer cures
• Entertainment like Hollywood studios and immersive theater
• And much more!

The one commonality? All companies that raise successfully on Wefunder have a loyal community of people who believe in them. 

It depends on whether you’re an accredited or non-accredited investor. If you’re accredited, you can participate in all security offers. You can invest in Reg A+ and Reg CF offers if you are non-accredited.

We do not allow investors from certain sanctioned countries, including Cuba, Iran, North Korea, Russia, Syria, and Ukraine's Donetsk, Crimea, and Luhansk regions.

Wefunder takes the security of user accounts seriously. Here are some measures in place to ensure account security:

Two-Factor Authentication (2FA): Users can enable 2FA, which adds an extra layer of security by requiring a verification code in addition to the password during login. Users will have the option to choose the level of security they want on their account:

1. SMS/Text Message - Add your phone number for SMS two-factor authentication.
2. Authenticator App - Use an authentication app or browser extension to generate one-time codes.
3. Security Key - Security keys are hardware devices that can be used as your second authentication factor. Please note: This is for single-device use only at this time.
   
   

While these measures help protect user accounts, it is important for users to also take personal responsibility for their account security. This includes using unique and strong passwords, being cautious of phishing attempts, and keeping devices and software up to date.

When investing on Wefunder, you need to provide a tax ID to invest. Tax ID generally means an SSN for an individual and an EIN for a company. We require these because when the company you invest in makes a distribution to investors (for example, if they get acquired), we’ll need to provide tax documents to you, such as a Form K-1, which requires us to include your SSN. If we don't receive your SSN, your investment will be canceled.

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. We use an RSA key to encrypt the SSN and isolate the private key from production machines. Access to the database storing encrypted SSNs is restricted within Wefunder on a need-to-know basis. We have a policy for access if and when an employee may need to view an individual's SSNs (for example, if we're preparing a tax filing or investigating fraud).

Identity verification is standard practice as part of Wefunder's Know Your Customer and Anti Money Laundering (KYC/AML) compliance. You may receive a prompt as you log in to your Wefunder account or through email to verify your identity to complete your investment. You may be flagged to verify your identity at the time of your first investment or after a later investment made on the platform.

Identity verification is standard practice as part of Wefunder's Know Your Customer and Anti Money Laundering (KYC/AML) compliance.

We take the security of your information very seriously. The information you provide is sent via secure API to Onfido, a trusted and widely used service provider.

You can read about Wefunder's privacy policy here.

For more information, please also see the privacy policy for Onfido.

Wefunder takes the identity verification process very seriously to protect our investors and company from fraud.

We are required to verify your identity. You can do this by logging into your account settings, clicking Investor Limits, and then clicking “Verify.”

You have three ways to verify your identity: SSN, Driver's License, or Document Upload. When entering information, be sure to enter it carefully and use your legally recorded information.

When uploading documents, accepted document types vary by region, but the identity document you submit must be currently valid, not expired and in the English language. If you are having an issue verifying your identification, we suggest that you try submitting a different picture of your ID or a different type of ID. We suggest that you upload a standard issued visa or Passport. Some forms of ID may not be supported.

IDs are often rejected because the image submitted is either blurry, has a glare, or the picture is cut off (all four corners must be shown in the picture). For passports, make sure you send a picture of the entire passport (top and bottom).

When you apply for verification, you'll see the following after submitting:

Once you are approved, the page will change to the notice below. Note: If you apply using your SSN or Driver's License, it will be approved within 30 seconds if all information matches. 

Your total net worth is calculated by adding up everything you own and subtracting any debts you have. When investing on Wefunder, do not include the value of your main home in your assets. Likewise, any mortgages or loans you have on that home should not be counted as liabilities (as long as they don't exceed the fair market value of your home).

If you are investing with your spouse, you can consider your combined income or net worth. The investment limit on your Wefunder account will be based on your combined net worth and income.

Confused? Don't worry, we can do the work for you! Go to your Investor Limits settings, fill it in, and we will do the calculations.

Accredited investors are wealthy: typically make over $200,000 per year ($300,000 if joint with a spouse) or have over $1M in assets, minus their primary residence.

To find out your investment limits, open an investor account.

The following information is for accreditation as an individual and as an entity:

Note: This process must be done every five years per guidelines set forth by the SEC/FINRA.

How can individuals qualify as accredited?

• Income over $200,000 per year for the last two years and expecting to remain the same
• Income over $300,000 per year for the last two years if joint with a spouse
• Net worth over $1 million, excluding the primary residence
• Investment professionals in good standing holding the general securities representative license (Series 7), the investment adviser representative license (Series 65), or the private securities offerings representative license (Series 82).

How can entities qualify as accredited?

• Entities owning investments in excess of $5 million
• The following entities with assets in excess of $5 million: corporations, partnerships, LLCs, trusts, 501(c)(3) organizations, employee benefit plans, “family office” and any “family client” of that office.
• Entities where all equity owners are accredited investors.
   

If you meet any of those qualifications and would like to verify your accredited status, we will need you to submit documentation confirming your income or net worth per the criteria listed above.

What forms/documents are acceptable to prove accreditation?

*Please note, all documentation MUST have the investor's full name and date of the document.

• Letter from a lawyer, accountant, dealer-broker, or investment advisor indicating that they have seen the investor’s financials and can confirm that they meet the accreditation requirements
• Tax forms like W-2s, 1099s, K-1s, etc.
• Certificates of deposit, tax assessment, or appraisals.
• Proof of license for Series 7, 65, or 82.
• If the investor is foreign and uploads foreign documents, you can convert the currency into USD to determine if they meet the threshold

You can upload these forms in your Investor Limits settings. Once you go to your settings, click Investor Limits on the side menu, and then select yes for Accredited Status. Once you do this, you'll see a "Verify" link where you can submit your documents.  Our Investor Success team reviews these requests Monday-Friday. Please allow one business day for processing.

Here are some commonly used terms:

Community Round — an offering when a startup lets thousands of their customers, users, & fans invest alongside VCs and angel investors.

Issuer — the company fundraising (running a "Community Round") on Wefunder.

Investment Commitment —  a pledge to invest in a Community Round; it is revocable by either you or the company, subject to certain terms and conditions.

Target (or Minimum) Offering Amount — the company must reach a minimum of $50,000 for the Community Round to be considered “successful.” This is considered their first goal and is required by Wefunder. The next goal is the ultimate goal the company wants to reach. If they don't reach the goal entirely, they can still be considered successful but may ultimately choose to cancel the Community Round.

When making a reservation, you are interested in a Community Round currently in what we call the "Testing The Waters (TTW)." This means they are taking reservations to gauge if they would have a successful Community Round. 

When making a reservation, you will be asked how you intend to pay:

• If paying by ACH, Wefunder will transfer the funds from your bank to your Wefunder Cash account (https://www.wefunder.com/cash). 
• If paying by Wire, Wefunder will put a request to transfer funds to your Wefunder Cash account (https://www.wefunder.com/cash). The investor must use the directions in their account (also sent via email) to initiate the transfer from their bank.
• If paying by Credit Card, Wefunder will pre-authorize their credit card to ensure it is active and can be charged. The pre-authorization will drop off the credit card holder's account within 48 hours.
   

Why do you use Wefunder Cash?

We utilize your Wefunder Cash account to calculate the reservation commitments towards a company's metrics. We can only legally take payments towards a company's escrow account once they file their Form C. The Community Round will do this with the help of Wefunder once they receive their minimum in reservations.

During the TTW period, terms, like money, cannot be legally tied to a reservation. This means that if the company offers Early Bird Terms, the investors who confirm their reservation into an investment first* will get Early Bird Terms - not those who made a reservation first. Similarly, contracts are unavailable during this time as there are no contractual agreements for reservations in the TTW stage.

* Wefunder VIP Members can still access early bird terms, as available, at any time through the raise.

When a company hits its goal, Wefunder will help that company file its Form C. Once that is complete, everyone who made a reservation will be emailed to confirm their reservation into an investment. When you do this, you can proceed with the payment method you originally intended or change to a new one. Investors will have the following options to pay:

• ACH Transfer (US bank account only)
• Credit Card - including Apple Pay and Google Pay (Limit $10,000 per investment.)
• Wire Transfer (investments $1000+ only.)
• Check (US only and investments $1000+)

If you or the Community Round cancel the reservation, you will be refunded any funds sent, including paid Wefunder fees.

Investing on the Wefunder platform is easy! Just navigate to the Community Round page of the company you want to invest in, enter the investment amount you want, and click invest!

The investment page will appear. Before you continue, read through the deal terms, contracts, and FAQs on the right side of the page to better understand the investment you are interested in making.

Next, confirm your investment amount. If the investment has perks, you will see what perks you are eligible for with the investment you are making.

Now, it's time to enter or confirm your investor information. Be sure to decide whether you will invest as an individual or an entity. 

Time to decide how you want to pay! Wefunder allows for ACH Banks (US bank accounts only), Credit Cards (limit $10,000 cumulatively, plus Wefunder fees per investment), wire transfers (investments $1000+ only), checks (investments $1000+ only), and Wefunder Cash.

Wefunder charges investors a transaction fee of 2% for payments made by bank ACH, wires, or checks. The minimum fee is $8, and the maximum fee is $100. For payments made by credit cards, Apple Pay, or Google Pay, Wefunder charges a 5.5% fee with a minimum of $8. However, there is no maximum fee cap for these payment methods.

It's time to meet that monthly reading quota. It's important to read through our legal notices before completing your investment. Investing in startups comes with a high level of risk. We encourage investors only to invest what they can afford to lose. Don't invest so much that it would impact your lifestyle or retirement plans. Every investment listed on Wefunder is riskier than a public company listed on the stock market, and it is entirely possible that you could lose every dollar you invest on the Wefunder platform.

Lastly, review your investment details and click the Complete Investment button. And voila!

The amount you can invest in different offerings on the Wefunder platform primarily depends on the specific offering and your status as an accredited investor. Some offerings may have a predetermined minimum and maximum investment. In most Community Rounds, the standard minimum investment is $100.

To determine how much you can invest in any offering on Wefunder, it is important to understand whether you meet the requirements to be considered an accredited investor.

A significant number of the offerings available on Wefunder fall under Regulation Crowdfunding, also known as Reg CF. If you meet the criteria to be an accredited investor, you will not be subject to any investment limits when participating in Reg CF campaigns.

Note: Once you have self-certified yourself (or previously been verified) as an accredited investor on the platform, you are eligible to invest without any restrictions. However, please remember that your self-certification may be randomly selected for audit or questioned, so it is important to provide accurate information. Providing false information is a violation of our terms of service and can lead to the suspension of your account.

If you are a non-accredited investor - which is the case for most investors - the amount you can invest under Regulation Crowdfunding within 12 months depends on your annual income level and net worth. As a non-accredited investor, you have the option to invest the higher of the following:

• $2,500; or
• If your annual income or net worth is less than $124,000, you can invest 5% of the higher value between your annual income or net worth; or
• If both your income and net worth are equal to or greater than $124,000, you can invest 10% of the higher value between your annual income or net worth, with a maximum investment amount of $124,000.

Please note that this investment limit applies to all Reg CF deals. If you invest in Reg CF deals on other platforms, you will need to disclose this information as well (and keep the disclosure updated) so that we can accurately track your limit. It is your responsibility to ensure the accuracy of the relevant figures.

Wefunder will periodically contact you to update this information. However, you can always, and should, as needed, update your disclosures by clicking this link to access your settings and update your disclosures.

Failure to provide accurate and complete information regarding your income, net worth, or previous investments may lead to the cancellation of your investment commitments and the freezing of your account.

Wefunder charges investors a transaction fee of 2% for payments made by bank ACH, wires, or checks. The minimum fee is $8, and the maximum fee is $100. For payments made by credit cards, Apple Pay, or Google Pay, Wefunder charges a 5.5% fee with a minimum of $8. However, there is no maximum fee cap for these payment methods.

In general, individuals who are 18 years or older are eligible to invest.

Each issuer on Wefunder determines any additional requirements for investing in each Community Round. Please refer to the Community Round page for more information on who can invest.

Please be aware that there are limitations on the amount you can invest based on your income, net worth, and any previous investments you have made in Title III/Regulation CF offerings.

Certain opportunities not facilitated under Regulation CF may only be available to accredited investors.

Are you international? We have investors from all around the world! With a few exceptions, we accept investments from international investors as long as you comply with the law in your country. If you're investing from outside the US, check out our step-by-step guide for international investors by visiting our International Investor Guide.

Unfortunately, residents of the Canadian provinces of Alberta, British Columbia, Ontario, and Quebec are currently barred from investing on our platform at their request.

Additionally, we cannot accept investments from certain sanctioned countries, including Cuba, Iran, North Korea, Russia, Syria, and Ukraine's Donetsk, Crimea, and Luhansk regions.

You can add an entity to link to your Wefunder account by going to your account settings, clicking 'Investor Information, and then clicking 'Add Entity' under the Entities section. Once you do that, all your future investments will use that entity when selected; just be sure to check the box that says "Invest via Fund or Trust" on the investment page. You can choose which entity you wish to use on the investment page if you have multiple entities.

You can invest both as an individual and as your entity in the same Community Round from the same account. Invest as an individual first, then return to the Community Round page and add another amount. The system will ask you if you want to add to your investment or invest as a different entity.

Note: If you are investing via a trust, you will use your SSN as you represent the trust and use the title of Trustee. If you invest via another entity type, you will use the EIN provided when the entity was created. You do not need to enter an SSN/EIN for international investors.

It's important to know that the legal name on your profile should NOT be the name of your entity - it should be the person representing the entity. We'll need this if you try to verify your identity on the platform. However, using your entity as the public name on your profile is acceptable.

If you need to change the entity on any existing investments, please contact the Investor Success Team once you have done the above, and they will assist you in the process. If the investment is direct, you will need to contact the company you invested in directly to have this changed.

Yes. If you have a self-directed IRA, you can most likely invest with it. You must follow these steps to have a smooth experience:

Please note: Investors can only invest via their IRA if the investment is a minimum of $1000.

• Investor must create a Wefunder account if they don't have one.
• Investor should put their name in the legal name section of the account. Do not put your entity in the legal name area.
• Investor needs to create an entity in their settings (https://www.wefunder.com/settings). Once you go to your settings, click Investor Information on the side menu and "Add Entity" under Entities. The IRA needs to give the investor the entity's title so that it will show on their contract.

• Investor needs to create an investment for the company they are interested in.
  • Investor needs to select wire as their option for payment.

• Investor must verify their identity (required by SEC) if they haven't already done so on their account.
• Investor must verify their accreditation (required by SEC) when investing over $50,000 if they haven't already done so on their account.

• The IRA needs to contact Wefunder (support@wefunder.com) for the subscription agreement.
  • VERY IMPORTANT: The IRA needs to reach out with the investor name, investor email used on Wefunder, and company the investor is investing in. Additionally, Wefunder will not provide the subscription agreement to the investor until the investment is finalized.
• Wefunder will supply the agreement to the IRA, and the IRA will send the money to Wefunder.

Under Regulation Crowdfunding, a company can legally raise a maximum of $5M within 12 months. Companies may also set a lower funding goal to avoid extra legal work.

Occasionally, we may experience high demand for our Community Rounds, which can result in oversubscription. To ensure fairness, we operate on a first-come, first-served basis for investments (unless instructed otherwise by the issuer). Please note that adding to your existing investment does not reset your position in the queue. Instead, the additional amount is treated as a new investment subject to its place in line. Consequently, your initial investment may be accepted, but the additional amount may not be.

We regret to inform you that we cannot update you on your position in the queue or confirm whether your investment, including any add-on amounts, has been accepted before oversubscription. Our closing team will notify you via email once the Community Round has been finalized and your investment has been approved or declined.

You may be wondering why we continue to allow investors to add funds even after we have reached capacity. This is because some investors may cancel their investment before the closing, freeing up a spot for the next person in line. Additionally, if an investor has incomplete action items in their portfolio, their investment will be canceled, and the spot will be given to the next person in line.

We do not issue fractional shares, so we round down your commitment.

For instance, if a company's share price is $20, and you commit $250, we'll lower your commitment to $240 to purchase 12 shares.

However, you will still be eligible for any perks you were expecting at that requested $250 level. Each company will manage the disbursement of perks after all contracts have been finalized. 

Investments on the Wefunder platform are managed in three ways:

• Direct - Managed by the company that you invested in
• Custodian - Managed by XX Investments, LLC (Most raises between May ‘20 and March ’21)
• SPV - Managed by Wefunder Admin, LLC or Wefunder Advisors, LLC (Most raises March '21 and after.)

Note: If a company uses a Custodian of SPV, it will be indicated in the legal disclosures in their Form C.

Direct Investments

If your investment is a direct investment, the company you invested in manages your investment. This means that their team will take care of anything you would need regarding this investment. Although Wefunder isn't involved with the management of your investment, we are more than happy to help put you in contact with them should you need it.

Custodian Investments

A Custodian is an entity (such as a broker-dealer, bank, or transfer agent) that holds any securities on behalf of all investors (who are the "beneficial owners" of the securities).  

This means investors do not possess the shares, convertible notes, or SAFEs. Instead, the Custodian holds them on their behalf. All securities' voting rights are delegated to the Lead Investor, who directs the Custodian on how to vote for the investor securities. The Custodian is the only entity listed on the cap table because it is the securities' record holder. 

On Wefunder, XX Investments, LLC - an SEC-registered transfer agent - acts as the Custodian for all securities sold on the platform that use the Custodian structure.

Using a Custodian increases the quality of startups that use Wefunder while giving investors more voting power on Wefunder. 

With a Custodian, higher-quality startups with other fundraising options are more willing to use Wefunder. Startups use a Custodian to ensure their follow-on financing won't be at risk. Venture capitalists are uncomfortable when startups have many small investors directly on the cap table  (they don't like collecting thousands of signatures). With a Custodian, one entity on the cap table represents all those smaller investors: XX Investments, LLC. 

Before Custodians, almost no companies that crowdfunded offered voting rights to their investors.  Now, all voting rights are held by the Custodian, which must vote as directed by the Lead Investor.

SPV Investments

To ease the logistical burden for founders and solve problems with having too many stockholders on the cap table, we are now using special-purpose vehicles (SPVs) for most new Community Rounds. This means we'll set up an LLC for the sole purpose of investing in each startup. All investors pool their capital into the SPV, which invests in the company as one entity. If there are early bird/VIP Member terms, a separate SPV will be set up to hold the early bird investors. 

We'll set up these SPVs at no extra charge to companies or investors.

Startups use SPVs to ensure their future growth and follow-on financings won’t be at risk. Having too many individual stockholders can make venture capitalists skeptical, require companies to go public before they're ready, and make gathering stockholder approvals a challenge. 

With an SPV, founders can have unlimited smaller investors grouped into one large entity, with voting power directed by a Lead Investor.

For most new SPVs, the manager is Wefunder Admin, LLC, who then delegates voting decisions to the Lead Investor.

For legacy Reg D SPVs and those set up for certain purposes, such as investing in follow-on financings, the manager is Wefunder Advisors, LLC.

The manager of the relevant SPV is indicated in the Subscription Agreement that investors sign when they invest through an SPV.

For more info on how SPVs solve some tricky legal issues in structuring investments, see here.

Due to the impact of COVID on small businesses, the SEC issued a temporary relief order with a few amendments meant to ease the process for companies looking to raise. If you're curious, you can read the full order here — some of these amendments center on how a company must disclose its finances. 

Here are the pre-existing guidelines:

• A company intending to raise up to $107k had to produce two years of GAAP (Generally Accepted Accounting Principles) statements certified by its principal executive officer.
• A company intending to raise more than $107k had to produce CPA-reviewed statements.

Here's what the temporary relief order changes (note that these changes only apply if a company has been incorporated for at least six months): 

• A company intending to raise up to $250k can produce two years of GAAP (Generally Accepted Accounting Principles) statements certified by its principal executive officer. 
• A company intending to raise over $250k must produce CPA-reviewed statements.
• A company can file a Form C (read: launch a campaign) without any financial statements, provided they’re added in before the company accepts investments. This means that every company must disclose financials to accept any money from investors, but some companies are exempt from including their financial info when initially filing their offering.

Y Combinator is one of the best early-stage investing firms - measured by objective returns.  They were the first investors in Reddit, Dropbox, Airbnb, Stripe, and over 100 more startups now worth over $100 million.  

Head over to Startup Investor School – an entire video series of investor tips created by YC. 

Investing in startups on Wefunder is a bit different than the stock market - contracts are not easily transferrable, and the person who will own the security must also be the person who consents to invest. 

Plenty of companies on Wefunder sell cool stuff that make awesome gifts! Feel free to browse through our Explore page.

You can pay using a bank transfer (US only), check (for investments $1000+), credit card, Apple Pay, Google Pay, or wire transfer (international investors only). If you choose to pay by credit card, Apple Pay, or Google Pay, there is a $10,000 limit. In addition, you can use money in your Wefunder Cash account.

International investors can pay by credit card or wire transfer. For wire transfers, we recommend TransferWise. You'll likely have to fund your Wefunder Cash account with a wire and commit to a specific company.

Your Wefunder Cash account is your online wallet with Wefunder. Our third-party banking partners, First Citizens Bank or Thread Bank, hold the money.

Transferring funds to your Cash account right after making a reservation helps you to invest faster – you can apply funds from there once you confirm an investment.

Any funds you transfer into your Cash account can be withdrawn anytime or used to fund a company. 

While Wefunder supports multiple payment methods, you must contact the Investor Success Team to complete this. To ensure quicker service, ensure all of your payment methods are in your Wefunder Wallet, and let the Investor Success Team know which payment methods and how much for each payment method when writing in.

We do not have an IBAN. You should be able to send a BIC/SWIFT wire through your bank. We recommend using TransferWise.

A complete international investor guide can be found here.

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 $100. For credit cards, Apple Pay, or Google Pay, Wefunder charges a 5.5% fee, with a minimum of $8 and no maximum.

Fees are one-time and are not reoccurring.

Yes. Your investment is placed in a third-party escrow account hosted by First Citizens Bank, Thread Bank, or Vitesse PSP. Funds are transferred to the business only after the Community Round goal has been met.

To execute your investment, there are a bunch of SEC guidelines and regulations we have to abide by.  Sometimes, it can take several months to finalize a Community Round after it closes. Once your funds have been sent to the company and your contract is countersigned, your investment will be marked as confirmed.

You can see your reservations and investments in your investor dashboard by visiting your Wefunder Portfolio. Here, you can see all your investments' status and payment information, edit the investment if the Community Round is still active, and download your contracts if applicable.

To view your reservations and investments, visit your Wefunder Portfolio. Here, you can check the status and payment information of all your investments and download your contracts if applicable.

If your investment is in the "pending" state, it has not yet been confirmed. We have received payment for your investment, but your funds are in our third-party escrow account and have not been sent to the company.

We must comply with many SEC guidelines and regulations to execute your investment. The finalization process completion date listed in your portfolio is an estimate. The actual duration of the process may differ from the estimated date, particularly for larger or oversubscribed Community Rounds. Once your funds have been sent to the company and your contract is countersigned, your investment status will be changed to "confirmed" in your portfolio.

Who doesn't love being treated like a VIP? At Wefunder, we offer investors the opportunity to enjoy that extra level of service and perks - including ~10% better terms in participating companies - via the Wefunder VIP Membership. For just $295/year, any investor can become a member. By becoming a Wefunder VIP Member, investors can unlock a whole new range of benefits and privileges to enhance their Wefunder experience. Enjoy exclusive access to premium Wefunder VIP deals, receive top-notch support from our investor concierge team, get priority on waitlists, receive fee discounts, and much more. Being a Wefunder VIP Member truly elevates the investing experience to the next level.

The Wefunder VIP Membership is $295/year membership. You have the option to set it to auto-renew or not, totally up to you. Please keep in mind that the membership fee is non-refundable, but don't worry, you can cancel it anytime you want.

As a Wefunder VIP, members will receive:

Exclusive Access to Wefunder VIP Deals

• Ensure you don't miss the upcoming Substack, Mercury, or Replit.
• Certain startups only accept funding from investors they invite. We now negotiate an allocation in most deals so Wefunder VIP Members can invest.

~10% More Favorable Terms

• Many startups offer better investment terms to early investors and Wefunder VIP Members (but not everyone).
• Look for the Wefunder VIP badge to see if you are getting better terms.
• Terms are typically set to 10% better for early investors and Wefunder VIP members.

20% Discount on Investor Fees

• You can save 20% on our regular investor fee* when you invest.
  • *Please note that credit card fees are not subject to the discount. We recommend paying via bank transfer instead.

Priority on the Waitlist

• As a Wefunder VIP Member, you will have priority over investors who are not Wefunder VIP Members when deals are oversubscribed.

Sleek Black Metal Membership Card

• NFTs are cool and all, but we like old-fashioned things we can touch. Our membership card comes with dozens of perks from our portfolio companies.

Dedicated Support from our Investor Concierge Team and Access to a VIP Investor Community

• Receive priority support whenever you need it.

Easy! Just head over to the Wefunder VIP Membership page.

We’ve made it easier to invest alongside people you respect.

You can follow any user on Wefunder and decide if you wish to co-invest alongside them.

If you decide to co-invest with them, you can indicate how much per deal you’d like to invest.

Each time the person you are following invests, you’ll be notified and can opt-in to invest alongside them with one click. You can always increase, decrease, or cancel.

Some users on Wefunder might be more qualified to perform due diligence in certain businesses that match up with their skills and experience.

While you should never outsource your due diligence, you can use the judgment of the co-investor you are following as one factor in your investment decision.

When you co-invest, you might help the investor you are co-investing with have more power and leverage to ask hard questions. For instance, it is unlikely that a founder would spend an hour talking to an investor who only wants to invest $100. However, if that person has many co-investors who might invest a collective $50,000, it is more likely the founder will consent to an interview.

Those who co-invest get priority on over-subscribed rounds. You also can invest slightly quicker since the investment amount is pre-filled.

No. You must opt in. You will be notified via e-mail when the person you are following invests, and you must confirm that you want to co-invest alongside them.

Yes, as long as the Community Round is still open.

No.

No. You are responsible for your own investment decisions.

We want to provide more ways for our users to conduct their own due diligence.

We believe one flaw of online fundraising is that not enough small-dollar investors have the power and leverage to talk to founders and get answers to hard questions.

It is our hope that co-investing will help Wefunder investors unite to increase further the quality of due diligence performed on companies that raise online.

A SAFE grants an investor the right to obtain equity at a future date if the startup sells shares in future financing. Top startups have historically used it in Silicon Valley to raise money from accredited angel investors. You should only invest in a SAFE if you believe the startup can raise financing in the future from professional investors.

Early-stage startups use SAFEs to delay the difficult task of figuring out how much a startup is worth. It's also a much cheaper and simpler contract than priced equity Community Rounds, which may require months of negotiation and upwards of 30 pages of legalese, costing tens of thousands of dollars.

The number of shares you receive is determined at the subsequent priced financing when professional investors – typically venture capitalists – set the price for preferred stock. Then, calculated using the Valuation Cap and sometimes the Discount Rate, your SAFE often converts into shares at a lower price than the venture capitalists paid since you invested earlier.

The Valuation Cap is the most important term in this security. It puts a maximum price on the stock price - the lower the price, the more shares you will get. If you invest in a startup with a valuation cap of $8 million, and they later raise at a $20 million Pre-Money Valuation, the amount of stock you'll get will be priced off the $8 million number. But, if the subsequent investors value the company at $4 million, that will be your price instead (perhaps further discounted by the Discount Rate).

Unlike a Convertible Note, a SAFE is not a loan. As such, it does not accrue interest, have a maturity date, or have a legal obligation to be paid back. This makes it a simpler and cheaper way to finance a startup, and it typically better aligns with the intention of most early-stage equity investors who never intended to be lenders (convertible notes are rarely, if ever, paid back in cash despite being a debt instrument – the startup goes bankrupt).

Further Reading:

• SAFEs 101
• SAFE Legal Primer
• Carolynn Levy (co-author) explaining SAFEs
• SAFEs Compared to Convertible Notes
• SEC Investor Bulletin

A convertible note is an unsecured loan that converts to stock at some point in the future. They are one the most popular forms of seed-stage startup investing because of their history, although the SAFE is rapidly becoming more prevalent.

Convertible notes are also helpful because they delay figuring out how much the startup is worth. The number of shares you receive is determined at the subsequent qualified financing (typically $1 million) when venture capitalists set the price for preferred stock. Then, calculated using the Valuation Cap, Discount Rate, and Interest Rate, your loan converts into shares at a lower price than the venture capitalists paid since you invested earlier.

If the startup does not raise another round of funding, the note becomes due at the maturity date, typically in 18-24 months. Convertible notes, however, are rarely repaid in cash. Instead, the note usually converts to equity at a pre-set target price.

The discount and interest rates have a relatively minor impact on future returns. The most important term to focus on – which can significantly impact the price of your future shares – is the Valuation Cap. This is usually set between $3 to $20 million, depending on how "hot" the startup is.

Learn more about convertible notes here.

As a non-lead investor investing a small amount, the essential terms to pay attention to are the Post-Money Valuation or the Pre-Money Valuation. This is what the company is considered worth; with it, you can calculate your percentage ownership. Comparatively, the price of the stock is relatively meaningless.

Most priced round contracts for venture-backed companies are based on the National Venture Capital Association templates. 

Read more about the NVCA documents.
Learn more about terms.

High-growth startups rarely raise seed-stage funding with loans, as debt doesn't offer enough return to account for the risk investors are taking.

However, loans or promissory notes can be more appropriate for cash-generating small businesses. One benefit of investing with a loan is receiving cash every quarter or year, as the principal is repaid alongside the interest rate. The downside of debt is you have no equity stake if the company suddenly becomes much more valuable.

A Wefunder Revenue Share Loan Agreement is a promissory note paid back from a share of the business's revenues.  

Important terms in this note include:

• Gross or Net Revenues. Net revenues exclude returns or shipping costs.
• Revenue Percentage. This is the percentage of revenue that is shared.
• Repayment Amount. Typically 1.5-3.0X, this is the maximum amount you will be paid back.
• Quarterly or Annual Disbursement. Companies choose to make annual or quarterly payments.
• Defer Payments. By default, every company can miss one payment without being in default.
• Secured. Some loans may be secured with all property of the business.
  
   

Some businesses choose not to share their revenue and instead offer something more like a car loan, using the Wefunder Promissory Note.  Important terms in this note include:

• Interest Rate. The interest rate per annum.
• Maturity Date. How many years until the loan is fully paid back?
• Quarterly or Annual Disbursement. Companies choose to make annual or quarterly payments.
• Grace Period. By default, these loans are deferred until 30 days after their crowdfunding deadline. Some businesses may defer the start of their loan at a later date, such as when their business is scheduled to open.
• Defer Payments. By default, every company can miss one payment without being in default. This will allow businesses time to recover if they have a bad year.
• Secured. Some loans may be secured with all property of the business.
• Personal Guarantee. Some loans may have an individual that personally guarantees payment.
• Subordination. Some loans are subordinate to a major bank lender.

It is up to each company to set the terms of their Community Round. 

Wefunder sometimes provides advice or guidance to companies on the right terms. We base this advice on several factors, including the company's stage of development, metrics such as revenue and user growth, industry, market size, comparable companies, and the overall state of the market. Wefunder may also refuse to host a particular Community Round if we believe the terms offered are unreasonable.

Yes! You can increase your investment; however, this will create a new investment. Because of this, you can only later cancel or amend this part of the investment. 

For example, you had a $2,000 investment finalized, and you later invested an additional $1000. You can now:

• increase your total investment to $3,500 ($2,000 finalized + $1000 new + $500),
• decrease your total investment to $2,500 ($2,000 finalized + $1000 new - $500 decrease),
• cancel your $1,000 investment (before the cancelation deadline) and be left with the original $2,000 investment.
• but you could not reduce your total investment below $2,000.

Yes.  Companies may choose not to accept your investment for any reason. One reason may be that they discovered you worked for a major competitor.

After the Community Round closes and the company has countersigned the contract and received the funds, your investment can no longer be canceled.

You'll be notified via email and receive a full refund of your investment and any fees you've paid.

Yes. You can change your mind anytime until a Community Round closes (or two days after you invest, if later), and you will receive a full refund, including any fees. Unfortunately, investments cannot be canceled after that time. Just go to your Wefunder portfolio and choose the cancel investment option.

You'll receive a five-day notice via e-mail when a Community Round is about to close. Additionally, we put a seven-day warning on the Community Round page to inform investors that it will close soon. You can cancel at any point up until the Community Round closes.

Once the minimum funding target is met, many companies do a "rolling close," where investments that have successfully applied are executed, and funds are transferred. However, the Community Round is still open to receive new investments. You'll still receive a five-day notice if this occurs. Once your funds are transferred to the company, you can no longer cancel your investment or obtain a refund. 

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. From there, you can refund the money to your bank account (US banks only) or wire the funds to your bank (international investors only.) Unfortunately, we cannot refund any check payment via check, as stated when you chose this option to pay. These refunds must be completed by bank transfer or wire transfer. 

We can also refund investments in Wefunder credit, which can be used toward future investments and fees!

The amount of your refund depends on the exchange rate. When we refund you, the amount you get back reflects the exchange rate on the day we issue the refund. Exchange rates change daily, so the amount you get back won’t always match your original payment. The US dollar value of your payment and refund will always be the same. We collect and refund online payments in US dollars. When we issue a refund to a card using another currency, your bank will convert it from US dollars for you. We are not involved in this currency exchange process.

We initiate refunds as we receive them. Our typical refund timeframes are as follows: 

• ACH Bank (US) - Within 3-5 Business Days, but can take up to 10 business days, depending on your financial institution.
• Credit Card - Within 3 Business Days, but can take up to 10 business days, depending on your financial institution.
• Wire (US) - Within 3-5 Business Days, but can take up to 10 business days, depending on your financial institution.
• Wire (International) - Within 5-7 Business Days. but can take up to 14 business days, depending on your financial institution.
• Wefunder Credits - Same Day

You cannot create a new investment commitment if an offering has closed.

You can see your reservations and investments in your investor dashboard by visiting your Wefunder Portfolio. Here, you can see all your investments' status and payment information, edit the investment if the Community Round is still active, and download your contracts if applicable.

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.  A simple loan, like your car loan, has a fixed repayment schedule known in advance.  Unlike a loan, a revenue share returns a fixed amount of money (such as 2X your investment), but the time it takes to repay depends on how well the business does. The faster the company grows revenue, the quicker you earn a return and the higher your effective interest rate.  
   
• Convertibles. Most early-stage technology startups use a Convertible Note or Simple Agreement for Future Equity. These will convert your investment to stock at a later date if the company raises a "priced round" from major investors, most often venture capitalists. At this point, you are a shareholder owning equity, and you earn a return if the value of that stock goes up over time, and you are able to sell it.
   
• Stock, No Dividends. When a startup is at a stage where they can afford to pay lawyers tens of thousands of dollars, they will do a "priced round". Like the stock market, you are buying equity at a fixed price per share (or unit for LLCs). If the company is successful, the value of the stock can increase with each subsequent round of financing, until the company is acquired or goes public. Then you earn a return.
   
• Stock, Dividends.  While a tech startup almost never offers dividends, a later-stage local business - such as a brewery opening a second location - often will.  The type of dividend can vary.  Some might offer a fixed dividend per share per year. Some might offer a percentage of profits.  A common scenario is also to "swap" the dividend after your investment is repaid.  For instance, a brewery might share 80% of its profits until the investors are repaid, and then 20% thereafter in perpetuity.

Returns on Wefunder investments tend to be longer-term (the average on a return, if you receive one, is around seven years), particularly with a convertible note or SAFE as you wait until the company goes public or is acquired. It may be quite some time until you see a return.

Market demand determines the valuation. Valuation shifts with time, depending on the amount of capital chasing startups. Early-stage high-growth startups are often valued at $3 to $20 million for their first financing. Lifestyle businesses are valued at less. Companies that have raised several financing rounds and are further along are worth far more.

To understand if a valuation seems reasonable, look at who the Lead Investor is.  How experienced are they?  How much did they invest under the same terms?  

Once you invest in a company on Wefunder, we track your investment over time and do our best to show you the updated value on your Wefunder Portfolio.

Our team actively tracks companies that have raised on Wefunder using a variety of data sources as well as communication with the founders. However, we don't always learn of events immediately. If you know of an event not listed on your Portfolio, please contact the Investor Success Team.

Equity Investments

This section covers investments in preferred stock and common stock ("priced rounds"), SAFEs, and convertible notes.

When you first invest, we mark its value as the amount you invested. We then update that estimated value when there is a meaningful subsequent event for the company that affects the value of your investment. These include: 

    - Subsequent financings. If a company you invested in does another financing, we update the value of your investment based on the price paid by investors in the new financing. If the price per share in the new financing is available, we use that to calculate value; otherwise, we provide an estimate based on the valuation.

    - Acquisitions. If another company acquires a company you invested in, we mark your investment based on the amount paid by the acquirer. If the acquisition has been announced but not yet completed, we will estimate the payout we expect you will receive. Note that this can change over time due to intervening events between the announcement and closing of the acquisition. 

    - Public offerings. If a company you invested in has gone public, we mark your investment based on price per share at the time of IPO. In most cases, investors are subject to a 6-month “lockup” following an IPO when they cannot sell their shares. Once the lockup has expired, we mark the value of the investment to the share price on the day the lockup expires.

    - Failures. If a company you invested in fails, we mark the value to $0. You may be able to obtain a tax write-off for this investment. Note that we only mark a company as “failed” once we receive reasonable evidence of failure - for example, a certificate of dissolution or confirmation from the founders that the company has shut down.

Until a company has undergone one of these events, we keep the investment marked to your original investment amount. This means that even if the company has meaningfully progressed, we do not adjust for the potential increase in value until a third-party valuation event.

Debt Investments

This section covers revenue share agreements, simple loans, and other debt contracts.

When you first invest, we mark its value as the amount you invested. Over time, as the company makes payments on the debt contract, we distribute those amounts to you and mark them as “Paid Out” on your Portfolio page.

If the company pays back 100% of your invested capital, then from that point on, we mark any additional payouts as a “realized gain” on your investment.

If the company fails before it can pay back 100% of your investment, we lock in any amounts paid to date as the return on your investment. The difference between your original investment amount and that return is marked as a “realized loss” on your investment.

After you invest in a company on Wefunder, the value of that investment will change over time. It may go up if the company raises additional rounds of financing, is acquired, or goes public. It may go down if the company goes out of business. That change in value is referred to as the “return” on your investment.

Your return is referred to as an “unrealized return” if the value has increased on paper, but has not yet been paid out to you. For example, if you invested in a company that later raises a new round of financing at a higher valuation, your investment has incurred an “unrealized gain”. Or, if the new financing round was at a lower valuation, your investment would have an “unrealized loss”.

Your return is referred to as a “realized return” if the change in value has been locked in. For example, if you invest in a company that is later acquired at a higher valuation, your investment has incurred a “realized gain” once the acquisition proceeds are distributed to you. If the company instead were to go out of business and the value is marked down to $0, your investment would incur a “realized loss”.

As a platform for companies to conduct their Community Round, Wefunder provides technology for early-stage private companies to gain funds from their community. We offer investors the opportunity to be early investors in companies that excite them. Once a Community Round is finalized, Wefunder informs each company of the importance of regular investor updates. We encourage them to provide quarterly updates but at least every six months. The frequency and quality of updates are ultimately up to the founders. As they approach six months, we will reach out to them to remind them.

Most companies are also legally required to issue an Annual Report 120 days after the end of their fiscal year. The annual report is a comprehensive update with their latest financials, board members, new financings, and more. Sometimes, they may no longer be required to file this information, though we encourage them to do so anyway. Most companies have their fiscal year end on December 31st, and their annual reports come out by April 30^th. 

While there is no public market for your investment, you may sell your stake to another investor if they are a family member or an accredited investor during the first year of your investment. After the first year, you may sell your stake to any interested buyer.

In either case, you'll need to find a buyer first. Once you have a buyer, email Wefunder* at support@wefunder.com to set up the legal transfer documents. During this process, you'll also need to arrange the transfer of funds between you and the buyer, as Wefunder does not assist with this step.

* If your investment is directly managed by the company you invested in (meaning not through an SPV or Custodian), you must contact that company to facilitate the transfer. Wefunder would not manage the investment in this case.

Schedule K-1. If you invested through an LLC (Limited Liability Company) — for example, investments directly into an LLC raising on Wefunder or investments in a Community Round using an SPV (Special Purpose Vehicle) — you will receive a Schedule K-1 in tax years where the LLC incurred a taxable gain or loss.

You can figure this out through the investment contract, which you can find on your portfolio page.

Form 1099. If you received a payment from a company you invested in — for example, a quarterly payment on a revenue share contract — you may receive a Form 1099.

You can view all your tax documents here.

This is for educational purposes only and should not be construed as tax or legal advice.

SPV Community Round. If you invested in a fundraise that used an SPV, Wefunder will work with our accounting partners to generate and distribute Schedule K-1s in tax years where the SPV incurred a taxable gain or loss (note that this may not be yearly). By opening the investment contract on your portfolio page, you can check whether you invested via an SPV.

Non-SPV Community Round. For Community Rounds not using an SPV, the company you invested in must generate tax forms for its investors. In some cases, Wefunder helps distribute these forms to investors once the company has generated them.

Loans & Revenue Share Investments. If you invested in a loan or revenue share contract, the company you invested in must generate and send you a Form 1099 in the years where they have made payments to you. In some cases, Wefunder helps distribute these forms to investors once the company has generated them. You can check whether you invested in a loan or revenue share contract by opening the investment contract on your portfolio page.

This is for educational purposes only and should not be construed as tax or legal advice.

Each year, we notify all investors getting tax documents for the current tax season by February 15 that they will receive these documents. If you don't receive a notification via email, you do not have any tax documents to expect from us for that current tax season. If you receive the notice, you will receive a separate email when the document is uploaded to your account.

By February 15: Wefunder will notify investors via their email as to which investments we expect will require a Schedule K-1. If you are not notified, then we do not expect you to receive a Schedule K-1 this year.

By March 15: Wefunder will provide an update on your Schedule K-1 if it has not already been uploaded to your account. By this point, you will know if your tax document will be delivered on time or require an extension. Wefunder will upload your tax documents to your Wefunder Tax Document Center, which includes a Schedule K-1 and other related documents (as needed).

By Tax Day: All completed tax documents will be uploaded to your Wefunder Tax Document Center. Note: If we cannot produce your tax documents by this date, we’ll notify you by email to file an extension with the IRS by March 15.

By September 15: Wefunder will have all remaining tax documents that require an extension uploaded to your account.

This is for educational purposes only and should not be construed as tax or legal advice.

In theory, you should claim the Qualified Small Business Stock (QSBS) tax exemption on the investments made on Wefunder the same way you could for any early-stage business that meets the requirements of Section 1202 of the tax code.

The QSBS tax exemption has a variety of requirements, including:

• The company is a US C-Corp with less than $50M in gross assets at the time the stock is issued (including the money raised in the financing)
• At least 80% of the company's assets must be used in operating a "qualified trade or business," which excludes personal services; banking, insurance, financing, leasing, or investing; farming; mining; or operating a hotel, motel, or restaurant
• The investor is not a corporation, acquires the stock at its original issuance (i.e., not a secondary purchase), and holds the stock for at least 5 years

Read more on QSBS requirements here. 

We can’t guarantee that any investments made on Wefunder qualify for QSBS. If you have questions on eligibility, we recommend speaking with your tax advisor. By commenting on the company's Ask a Question page, you can also ask founders whether they have looked into QSBS eligibility.

To change your password, go to your settings. Find Password and choose Reset to create a new password.

No worries! If you forgot your password, go to the login page and click Forgot Password. Enter your email address, and we'll send you a password reset link. 

Contact our Investor Success Team for help at support@wefunder.com if your investment has not been confirmed.  If the investment is already closed, you must contact the company you have a contract with if an SPV or Custodian does not manage it. Once the company approves the change, we can update our copy of the contract. If an SPV or Custodian manages the investment, we can make the change for you.

Everything is handled electronically. You sign a contract when you apply to invest. The founder will sign the contract after the Community Round closes and finalizes the raise. Once the founder countersigns, you can find the contract in your portfolio.

To unsubscribe from Wefunder emails, go to your email settings. You can subscribe to certain categories of emails and only receive emails that are relevant to you. Such categories include the following:

You will still receive emails from Wefunder relating to transactions and account activity.  In addition, you will still receive updates from companies you have invested in and that are on your watchlist. If you wish to receive those no longer, you can change the last setting to “never.”

For any company currently raising, you can ask the founders questions directly on the Community Round page by clicking the "Ask a Question" tab. Founders monitor this forum and answer as they are able.

The founder(s) of the company you invested in should reach out to you shortly after the Community Round has ended with information on how to claim any perk(s) you may have. If you do not hear from them, you will need to contact the company as they are the ones that take care of perks. Please note: Wefunder does not monitor or facilitate the perks that a company offers during their raise.

Very! You should only invest what you can afford to lose. Only invest so much that it won't impact your lifestyle or retirement plans. Every investment on Wefunder is much riskier than a public company on the stock market. You may lose every dollar you invest on Wefunder.

No!  It’s illegal for us to endorse or recommend any company. 

But even if it wasn’t illegal, we don’t want Wefunder to be a “gatekeeper” who picks and chooses which ideas are worthy of funding. That’s for you to decide.

No company on Wefunder – no matter where it appears on our website – is endorsed by us.  Also, while we may sometimes help companies “make their profiles look pretty,” all of this information is provided and fact-checked as accurate by the companies, not us.     

You are more likely to avoid loss by diversifying your investments, focusing on areas in which you have the expertise, and investing in startups whose products you passionately use. Even professional investors have difficulty predicting how startups will earn money in the future (e.g., Google in 1999). Investing in what you know and find personally valuable is an important signal of a good investment.

Wefunder can't legally provide investing advice. However, we recommend making several small investments yearly rather than one large one. For instance, if you decide you can safely invest $5,000 per year in startups, it'll be less risky to make ten $500 investments instead of a single $5,000 one. You should only invest what you can afford to lose.

The answer is yes if you can afford to lose every dollar you invest on Wefunder and wait 7+ years for a return.

You might strongly believe in a company's future success, but it's safer to think of an equity investment as a lottery ticket that might pay off in the long term.

Unlike the stock market, investment outcomes are much more binary (complete failure or wild success). No stock market allows you to easily re-sell your investment stake to someone else unless the company is acquired or prepares for an IPO.

Compared to equity investments, loans can be slightly less risky but have a smaller upside. Assuming that even a loan would not be paid back would be best. Only invest what you can afford to lose. 

Yes. An equity stake will almost certainly be diluted.

Successful startups host many rounds of financings, all the way to an IPO. For each financing, the startup issues additional stock to the new investors. This is healthy and normal as long as the company's value increases with each funding round. For example, the first investor in Facebook, Peter Thiel, originally purchased ~10% of the company for $500,000. By 2011, that stake was diluted to under 3% but estimated to be worth ~$2 billion.

Sometimes, when things are not going well, the startup can go bankrupt or raise more money in a "down round," which means the company's value has decreased since the last financing. This is very bad for the founders and past investors; the dilution happens rapidly. But it's preferable to the startup going bankrupt and the investors losing everything.

Wefunder provides startups free continued access to our platform, but they are not guaranteed to continue using our services.

If you have any questions, Wefunder provides three convenient ways to contact them. You can always email them at support@wefunder.com anytime. Alternatively, you can chat with them online when logged into your account by clicking on the blue circle at the bottom right of your screen. You can also reach them by phone at 415-209-5902 and follow the prompts.

Wefunder answers emails within one business day. Wefunder's online chat and phone support are available from 10:00 a.m. to 5:30 p.m. PST, Monday through Friday, excluding holidays.