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Form C

  • What is a Form C?

    A Form C is the compliance document you must file with the SEC in order to raise money on Wefunder with Regulation Crowdfunding.

    Wefunder has an online tool that helps you create a draft Form C fast and easy.  Before you launch, we'll also help you fill it out and do a compliance review.  

  • What legal issues do I need to be aware of?

    You should carefully read the Founder Legal Primer.

  • What's the minimum amount I can raise?


    In a few cases, for idea-stage founders raising from their friends and family, we may lower it to $20,000.  

  • What's the maximum I can raise?

    With Regulation Crowdfunding, you can raise $1,070,000 per year. 

    You can, however, raise an unlimited amount under Regulation D from accredited investors. Wefunder will spin up a free Regulation D campaign for you if you cross $1,070,000, so you can raise more money.

    For those who raise $1 million with Regulation Crowdfunding on Wefunder, we will host a Regulation A+ campaign for free. With Regulation A+, you can raise up to $50 million per year.

  • How should I set my fundraising target?

    You must hit your minimum funding goal for the campaign to be successful. 

    We recommend setting the funding goal to the lowest amount of money you can make use of, then specifying how you'd use any extra cash. For instance, if it costs $50,000 to purchase a new budget-widget-maker, but you could use $500,000 for a super-awesome-widget maker, set $50,000 as your funding target.  Then indicate what you'd do with the $500,000.

    We also require that your minimum goal be enough to give your business at least 6 months of runway. 

  • How do I write Risks?

    You should include every risk that you can think of that is specific to your business.  

    Do not think in terms of “these risks are going to scare away investors!” because painting a rosy (but incomplete and inaccurate) picture for your investors is bad for every party involved, including yourself. 

    Investors respect transparency. Writing down the risks not only helps investors make a sound decision; it also protects you as a founder.

    1. Disclose All Risks. Disclose everything you can think of that is specific to your company and industry.
    2. Be SpecificThe law requires that these risks be specific to your business, not generic boilerplate. 
    3. Write At Least SixOur system requires a minimum of six risks along with a few sentences of description for each. But we strongly recommend erring on the side of caution — even if you’re not sure, add it. 

    It's hard to think up risks out of thin air. This is why we've drafted a huge document trying to capture all the risks that can be relevant. It's a beast of a document, but definitely useful to dig through.  

    You ready? Open if you dare.

  • Financial Requirements: Regulation Crowdfunding

    The law requires that you disclose up to two years of financials in GAAP (generally accepted accounting principles) format. 

    If you are raising less than $107,000 you must provide GAAP financials as explained below, which include an explanation of your taxes in the notes section (note: full tax statements will not be required.) These do not have to be reviewed by an independent CPA.

    If you are raising more than $107,000, you will also need a CPA Review Statement.

    We can introduce you to CPAs that can do this work for you quickly and cheaply. 

    However, if you are using your own CPA, please provide them with this information:

    1. GAAP Financials must include:

    • Balance Sheet

    • Income Statement

    • Statement of Cash Flows

    • Statement of Stockholder's Equity

    • Foot Notes

    Notes are typically 2-5 pages and describe your major accounting policies. Here's an example of GAAP financials.

    Two years of financials are required.  

    • Incorporated within 120 days of the fundraise: Need balance sheet as of a date in that period, which may be the inception date

    • Incorporated 2019: Need GAAP compliant 2019 financials (from inception)

    • Incorporated 2018: Need GAAP compliant 2018 financials (from inception) 

    • Incorporated 2017: Need GAAP compliant 2017 and 2018 financials

    • Incorporated earlier: Need GAAP compliant 2017 and 2018 financials

    • If your fiscal year is not 12/31, please provide year end financials. Your financial statements cannot be more than 16 months old.

    Even if you are pre-revenue and have $0s all the way through- these statements are still required. 


    Is this your second Regulation Crowdfunding campaign?

    If yes, and you are raising more than $535,000, you will need audited financials. These will have to be completed by a CPA who is qualified to complete audits.