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This guide covers all the good stuff around accessing your funds and finalizing your Wefunder round: wrapping up administrative details, finalizing investment commitments to make those funds available for disbursement, finishing investor-related documents and contracts, and getting the money.
*If your round is currently live and you're looking to withdraw funds, scroll down to the section titled "What if I need some capital while the round is open?"*
Your round closes on the date set in the Form C as the deadline to reach the (minimum) target offering. If you don’t reach your minimum by the round close date, we’ll have to cancel your round and refund investors. If you do reach your minimum, congratulations! We’ll start the administrative process of finalizing your round and disbursing funds to you.
Where do I find my round close date?
You can find your round close date on your Form C in the first section, under “Deadline to reach the target offering amount.” You can also see it on your /manage page under "Important Dates".
Can I change my close date?
Wefunder allows one extension per round with a maximum round duration of 6 months. You can also choose to close your round early (provided it's been open for at least 21 days), though you must provide investors with a 5 business day closing notice. (We'll need notice to make this happen, so let us know at your earliest convenience if you want to close early). To make adjustments to your close date, reach out to us at email@example.com.
How does closing work?
21 days before your round closes, we’ll reach out to confirm the date your round is closing and initiate next steps. If you have not yet used an extension and would like to, you can do so at this time. At this time, we’ll provide an update on:
- Funds committed: This refers to all investments committed to a round — whether funded or unfunded. It’s every dollar someone said “I’m going to give to [company],” whether or not said dollar actually made its way to Wefunder.
- Funds available: This includes all investments with funds in escrow and ready to be disbursed.
- Unavailable or "blocked" investments: This includes all investments which are either unfunded or have funds in escrow but are not ready for disbursement due to another issue (learn more about issues that can block an investment in Section II).
In order for your round to be successful, you must clear your minimum target offering with available funds. It’s OK if unavailable investments become available after the campaign closes, but all commitments must be made before you close. You can see the status of every investment by downloading the csv ("Export Investor Info") on your /manage page.
If you are unable to reach your minimum target offering in available funds, your round will be canceled and all investors will be notified and refunded.
What if I need some capital while the round is open?
Some founders choose to take advantage of a rolling close, which allows you to withdraw one tranche of available funds from your round while it remains open. To qualify, you must have at least your minimum offering amount in available funds to do so. If you launched your round without a lead investor or financials, we'll also need to first file a material amendment that formally adds those things to your campaign and give investors 5 business days to reconfirm. If you raise above $500K, you become eligible for a second rolling close.
Additionally, investors with investments eligible for disbursement must first be notified that you're initiating a rolling close and will have 5 business days to opt out of the tranche. Once the 5 business day period is over (provided you are still over your minimum in available funds) you can receive a disbursement; we run a weekly tranche schedule with disbursements happening on Fridays.
When you withdraw funds during a rolling close, you will countersign contracts for all investments included in the rolling close. This means that you’ve executed contracts with those investors whose funds are disbursed, and your round is officially successful. It also means that you can no longer cancel your round and refund investors whose funds you have withdrawn.
If you’d like to initiate a rolling close, feel free to reach out to us (firstname.lastname@example.org) to confirm the status of your available funds. Please note it may take a few weeks to set everything in motion and receive your wire.
Congratulations on a successful round! So what’s next?
Our goal is to get you an initial tranche of available funds within 2-3 weeks of your close date. A member of our team will check to make sure your available funds are over the minimum threshold and work with you to schedule a tranche date.
We'll then work to clear blocked investments and ready them for a final disbursement. You can see which investments are still incomplete or blocked by downloading the csv ("Export Investor Info") on your /manage page. We will email everyone whose investments are blocked (and might ask you to do the same) and prompt them to take the necessary steps by a deadline. Once the deadline has passed, we’ll cancel all remaining blocked investments and slot you in for the final wire.
We typically disburse all funds within 2-3 tranches, depending on the size of your raise, whether or not you have early bird terms, the number of blocked investments, etc. When we schedule you for your first partial tranche, we'll be able to give you a general timeline of how long this whole process will take based on your raise.
Some common reasons why investments are blocked and how to clear them:
To resolve an issue with an investment, the investor can visit their "My Investments" page at https://wefunder.com/portfolio. Here they will see and be able to resolve any issues with all investments.
- Payment failed or missing payment: The investor has committed to investing but we have not yet received their payment.
- Reconfirm investment: If an investor needs to reconfirm their investment due to a material change, their funds (even if in escrow) will be blocked until this is resolved. If the investor doesn’t reconfirm the investment within 5 business days of viewing the material changes, the investment must be canceled per SEC regulations.
- Re-sign contract: If an investor needs to re-sign their contract to agree to some change of terms during the raise (i.e. if they’ve been upgraded to Early Bird terms), their funds (even if in escrow) will be blocked until this is resolved.
- KYC/identity verification: We're unable to verify the investor's identity with the documents provided; they'll need to provide a photo ID or their SSN.
- Accreditation verification: We're unable to verify accredited status with the documents provided; they'll need to upload a document to verify their status as an accredited investor.
- Tax ID: Some companies require that investors provide a tax ID number in order to invest, as their corporate structure will require them to send annual tax documents.
- Reconciliation and refunds: These and a handful of other blockers are mostly housekeeping on Wefunder’s side, and we usually don’t handle them until it’s time for a final tranche. However, if all other blockers have been cleared and our housekeeping items are keeping available funds from climbing over your minimum, we’ll make an exception and clear them early.
Woohoo! Your money has been disbursed, but there are a few more steps...
1. Once all investments are disbursed, we’ll follow up with a zip drive of your executed contracts and a final investor list. Remember, once contracts are executed you have a legal relationship with your investors. Be mindful to adhere to the terms of the contract, and to keep their personal information secure.
2. Review your investor contracts and Form C to see what is owed to investors (i.e. repayments, stock certificates, etc.) and prepare to delight your supporters by making good!
For Revenue Share or Loans: Reach out to email@example.com to make sure the repayment schedule is set. You can find the terms in the template contracts your team reviewed (also linked at the bottom of the Form C page). Please also keep in mind if you have early bird terms that those contracts will have different terms.
For SAFEs: Work with your attorney or reach out to firstname.lastname@example.org to learn about our partners who can work with you to issue stock certificates, provide cap table management, etc. Make sure to follow up with investors and send them updates about this!
Don’t forget to send out perks! If you have questions about perks, email our team email@example.com.
3. We recommend posting monthly updates (here’s why) to keep your investors engaged and aware of how your company is doing! Here’s an example of how important updating and engaging investors can be to a company’s success. On your dashboard, and through this direct link, you can find a form to send updates to the Wefunder community.
And remember — your investors form a community of your most committed users/supporters. They’re your most passionate brand ambassadors, so feel free to mobilize this network in your favor!
If your round is successful, we’d love for you to raise another down the road with us! Feel free to reach out to your Wefunder contact at any point in the future.
And… as always, feedback! We would love to hear from you! Please email firstname.lastname@example.org with any thoughts, complaints, celebrations, or anything you’d like to share with us.