Understanding "pending" investments

## What does "pending" mean? On the directory and investments pages, you'll see investment funds in three categories: "no payment," "pending," and "ready." This article is about the "pending" group - these are investments that are either on their way to you or stuck because the investor needs to complete an action. The good news? Pending funds aren't lost. They're either already moving or just need the investor to take a quick action to get them flowing. Use the links below to access either page, but replace **[your-company]** with the name you used in your Wefunder campaign URL. - Directory page: **https://wefunder.com/[your-company]/directory** - Investments page: **https://wefunder.com/[your-company]/investments** ## Two types of pending investments Sometimes an investment is pending because funds are in transit. Other times it's pending because the investor needs to complete an action item. Here's what to look for and how to resolve each type. ### 1. Payments in transit The investor has committed, but their funds are literally on the way to our escrow account. The timeline depends on their payment method: - **Wire Transfer:** 1-2 business days (longer for international wires) - **ACH (Bank Transfer):** 5-7 business days - **Credit Card:** Instant (but appears as pending until confirmed in escrow) Once the funds hit our escrow account, they move to "ready" and you can include them in a withdrawal request. ### 2. Investor action items Sometimes an investor's funds are held up because they haven't completed something on their end. Here are the 6 most common reasons and how to resolve each one: #### Tax ID not provided - **What it means:** We need their tax ID for compliance and regulatory requirements. - **What investors need to do:** They'll receive an email asking them to provide their tax ID. They can submit it directly through the platform or reply to that email. - **How you can help:** If they're confused, let them know we need their tax ID to finalize their investment. Point them to their email from Wefunder, or have them reach out to support@wefunder.com. #### Identity verification incomplete - **What it means:** The investor hasn't finished the identity verification (KYC) process. - **What investors need to do:** They need to complete the full KYC verification process, which usually involves answering some questions and confirming their identity. This typically takes 2-3 minutes. - **How you can help:** Remind them that their investment isn't locked in until they finish this step. #### Investment amount not confirmed - **What it means:** The investor committed to an amount, but maybe you made material changes via an amendment or the terms of the round have changed. - **What investors need to do:** They'll see an email where they just need to review the new terms and confirm the amount they're investing. It's a simple click-through. - **How you can help:** Let them know they're close. All they need to do is review the changes and confirm the amount they agreed to invest. #### Accreditation status not proven - **What it means:** We need proof that this investor qualifies as accredited because of the amount of their investment. - **What investors need to do:** Depending on their situation, they either update their basic investment limits (net worth and annual income) in their Settings, or for regulation D rounds they need to provide proof of income, net worth documents, or professional credentials. The email they receive will explain exactly what type of proof we need. - **How you can help:** Explain that accreditation just means verifying they meet SEC requirements. Have them contact support@wefunder.com for specific guidance on what documents to provide. #### Investment reservation not confirmed - **What it means:** Before your Form C was filed, this investor made a reservation (a placeholder commitment). Now they need to confirm that reservation to turn it into a real investment. - **What investors need to do:** They'll receive an email asking them to confirm their reservation. They click through and confirm the details, and their reservation becomes a "real" investment. - **How you can help:** Reach out to them directly and remind them to confirm their reservation. These are usually your warmest leads, so a personal note from you can speed things up significantly. Explain what changed and why it's actually good for them. #### Payment failed or insufficient - **What it means:** The investor's payment didn't go through, or they didn't send enough to cover their investment plus the Wefunder fee. - **What investors need to do:** They'll receive an email explaining the issue. They need to either retry their payment or authorize a charge for the missing amount. Most issues are simple, like a declined card, or they forgot to account for the fee. - **How you can help:** Check in with them directly. Often it's just a card issue or they didn't realize the fee. ## What founders can do If you have investors stuck on open items: **Step 1:** Export the pending investor list to a CSV from your directory or investments page (either works). **Step 2:** Reach out to those investors directly via email to let them know what's holding up their investment and what they need to do. A personal note from you often works better than automated reminders. **Step 3:** We also send automatic reminders to investors about pending action items. Once an investor completes their action item or their payment clears, their funds automatically move from "pending" to "ready." ## Why this matters Pending investments are just funds that need a final step before they're available for you to access. By reaching out to your investors about what's needed, you can help get their money into the "ready" column faster. Every founder's biggest bottleneck is getting pending funds to "ready", so this proactive outreach directly impacts how much you can withdraw and when. Have pending investors you can't figure out? Reach out to closing@wefunder.com and we can help clarify what's holding things up.