Using a Nominee increases the quality of startups that use Wefunder while also giving more voting power to investors on Wefunder.
Access to higher-quality investments. With a Nominee, higher-quality startups with other fundraising options are more willing to use Wefunder. Startups use a Nominee 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 Nominee, all those smaller investors are represented by one entity on the cap table: Wefunder Investments Ltd.
- Concentrate investor voting power into one Lead Investor. Without a Nominee, companies would be very unlikely to offer voting rights to their investors. Now, all voting rights are held by the Nominee, which votes as directed by the Lead Investor.