Let's start with what they are not - reservations are not investments. Reservations are non-binding pledges done before the company files their legal paperwork, in what we call "Testing the Waters" or TTW for short. This means no money is sent to the company and no contracts are signed. Companies hold a "Testing the Waters" phase to see whether there is enough interest to have a successful campaign.
It's important to note that a reservation does not guarantee getting into the fundraise, receiving early bird terms, etc. In short, you are simply saying "I like this company and would love to invest $X once the campaign starts!"
But remember: once the campaign goes live you will need to confirm your reservation. Otherwise, you won't make it into the fundraise (reservations ≠ investments).
So, how do you go about making a reservation? Couldn't be easier!
Step 1: Find a company you'd like to invest (this is the easiest step!) 🔍
Step 2: Enter the amount would like to invest when the campaign goes live and click "Invest" 🚀
Step 3: Fill in your Investor Info section 🗂️
Step 4: Fund your Wefunder Cash (learn more about Wefunder Cash here) 💰 - you have a few options when it comes to this:
Bank Account (US only): the funds will be pulled automatically and they'll be kept in your Wefunder Cash account —this means you will be charged at this point. The funds will be ready for you to use when the campaign goes live and you can withdraw them at any point.
Wire (only $1,000+ reservations): you will need to send the wire yourself and the instructions will be emailed to you. You will be charged once you send us the wire and, like using a bank account, the funds will be in your Wefunder Cash account when we receive them.
(Note: the funds in Wefunder Cash are not tied to any particular reservation and you can use them for any investment on Wefunder's platform)
Credit Card: we will do a pre-authorization check to make sure the card is ready to be charged when the campaign goes live. This is not an actual charge and it will drop a few days from your credit card statement. You will only be charged once you confirm your reservation.
Step 5: Click "Complete Reservation" ✅
You've completed your reservation 🎉 What now?
Once the company fills out the legal paperwork and the campaign goes live, you will receive an email from firstname.lastname@example.org asking you to confirm your reservation. The email will direct you to the page where you can confirm it!
You can also do so by visiting your Wefunder Portfolio, finding your reservation, and clicking "Confirm Investment." If you want, you can also cancel the reservation by hitting "Discard, I changed my mind."
At this point, the process is similar to process of making a normal investment with Wefunder.
Step 1: Confirm the amount you'd like to invest 💰
If you changed your mind about the amount you want to invest, you can increase it or decrease it now.
Step 2: Confirm you Investor Info section 👌
Step 3: Select the payment method 💳
If you previously funded your Wefunder Cash through a bank account or a wire, you can choose to fund your investment using "Credits" here, otherwise choose your payment method of choice.
Step 4: Click "Complete Investment" ✅
Hurray 🎉🎉 ! Your reservation is now an investment. Make sure you don't have any action pending items such as inputting your SSN and you are good to go. Keep an eye out on your Wefunder Portfolio and your email inbox to see if there are any pending items.
Reach out to us at email@example.com if you have any questions or run into any issues - we'll be happy to help.