Private Rounds overview

## What is a Private Round? Private Rounds help founders raise money with less grunt work. Founders can invite investors to invest as easily as Venmo. Investors can sign contracts and transfer payment in a couple of clicks. Founders can invite investors to invest directly on their cap table or through a founder-led SPV that Wefunder provides. ## Who are Private Rounds a good fit for? Startups looking to keep things simple, and raise funds quickly. Private Rounds work well for any founder who wants to skip the hassle of manually sending DocuSigns, coordinating wire transfers, and managing investor spreadsheets. ## Why run a Private Round? (1) Spend less time on grunt work like sending DocuSigns, wire transfers, and managing investor spreadsheets. (2) Use our SPV to take smaller checks as one line on the cap table. You can raise more money from friends, operators, founders, and batchmates – while keeping a clean cap table for follow-on VC rounds. (3) If you want to, you can share your raise with Wefunder's 100K+ accredited investor base, to raise more money, faster. ## Do you work for SPV investments only? No. You can accept investments direct on the cap table as well. ## What are the downsides of a Private Round? Traditional investors might prefer to use older methods of investing, such as using emails, lawyers, DocuSign, and manual wire transfers. If so, you can accommodate their preferences by accepting investments outside of Wefunder. ## What SEC exemption do you use? By default, Private Rounds use Regulation D 506(b). You are limited to raising from accredited investors only, and limited to private solicitation (i.e. no public marketing of the raise). We can also support Regulation D 506(c) – which allows for public advertising – on a case by case basis. If you would like to learn more, please reach out to launch@wefunder.com.