After You Raise
- How do I close my campaign?
- What if my campaign fails?
- What happens if a material change occurs?
- Can I extend my funding deadline?
- Will investors contact me directly?
- How do I update investors?
- What updates will investors expect?
- Do I need to file an annual report?
- Is it free to use Wefunder after my fundraise?
After your funding target has been met and at least 21 days have passed, you may initiate the close of your campaign at any time.
After you decide to close your campaign, investors are given a five-day warning. They are given one last chance to cancel their investment and request a refund.
Unfortunately, if your campaign fails, you won't be able to run a new campaign on Wefunder for the same company unless you can demonstrate that you've reached a significant milestone. This could be customer growth, the addition of new distribution channels, the addition of new products, or more.
If a material change in your business has occurred during your fundraise, you must disclose it to your investors before you close the round. All investors must then reconfirm their investment.
A material change is anything a reasonable person would think should be disclosed to investors because they might change their mind. Some examples could be your co-founder quitting, the big deal you bragged about falling through, or an unexpected drop in sales.
Yes. However, this is a material change that requires all of your investors to reconfirm their investment. Still, it's often a better option than failing.
No. We don't hand out your email addresses or phone numbers. All communications with investors are handled on your company feed.
On your dashboard, and through this direct link, you can find a form to send updates to the Wefunder community. This is often the only communication your investors have with you, so you should update this space at least once a quarter with updates and progress. Not all of these updates need to be long or serious – even just posting a few photos or paragraphs detailing the new cool thing your company is doing will show investors that you're using their money to help move your company along.
You should update your investors often enough to make them feel involved in what you are doing. The better they feel, the more likely they are to help when they can. We really encourage you to take advantage of your large investor base on Wefunder.
Unlike public companies, updates are not required by law, but it's nice to let your investors know about your growth, sales, new partnerships, hires, and the other things going on at the company.
We recommend you update your investors at least once a quarter.
If you complete a successful Regulation Crowdfunding offering, you’ll need to file a report once a year to update the SEC and your investors. The report highlights your accomplishments over the last year and details your future plans. You’ll also need to include updated financial statements. The financial statements do not need to be audited or CPA reviewed, but they need to include notes and be certified accurate by the principle executive officer.
The annual report, or Form C-AR, is due no later than 120 days after the end of the fiscal year as indicated by the financial statements in the original offering.
It can be intimidating, but Wefunder has an easy and free tool to help you through the process! When the time comes, we’ll send you a reminder email with the tool and instructions.
This might sound like a pain that you want to just ignore. But, don’t do that! If you neglect to file an annual report, you won’t be able to raise future Regulation Crowdfunding rounds until you file the annual report. However, you may still raise funds from accredited investors only using Regulation D.
Different companies have different reporting requirements:
If your company was dissolved, if you’ve liquidated all your shares, or if you’ve repurchased all issued shares, you do not need to file an annual report.
If you have fewer than 300 shareholders, you only need to file one annual report. Then you’re off the hook!
If you have more than 300 shareholders but less than $10 million in assets, you need to file three annual reports before you are exempt.
If you don’t meet any of those requirements, then tough cookie, you need to keep filing annual reports. But fret not, our tool will be there to the rescue!
Yes. It's free to continue to use our platform to communicate with your investors.