When making a reservation, you are interested in a Community Round currently in what we call the "Testing The Waters (TTW)." This means they are taking reservations to gauge if they would have a successful Community Round.
When making a reservation, you will be asked how you intend to pay:
- If paying by ACH, Wefunder will transfer the funds from your bank to your Wefunder Cash account (https://www.wefunder.com/cash).
- If paying by Wire, Wefunder will put a request to transfer funds to your Wefunder Cash account (https://www.wefunder.com/cash). The investor must use the directions in their account (also sent via email) to initiate the transfer from their bank.
- If paying by Credit Card, Wefunder will pre-authorize their credit card to ensure it is active and can be charged. The pre-authorization will drop off the credit card holder's account within 48 hours.
Why do you use Wefunder Cash?
We utilize your Wefunder Cash account to calculate the reservation commitments towards a company's metrics. We can only legally take payments towards a company's escrow account once they file their Form C. The Community Round will do this with the help of Wefunder once they receive their minimum in reservations.
Early Bird Terms and Contracts
During the TTW period, terms, like money, cannot be legally tied to a reservation. This means that if the company offers Early Bird Terms, the investors who confirm their reservation into an investment first will get Early Bird Terms - not those who made a reservation first. Similarly, contracts are unavailable during this time as there are no contractual agreements for reservations in the TTW stage.
What happens when the company files its Form C?
When a company hits its goal, Wefunder will help that company file its Form C. Once that is complete, everyone who made a reservation will be emailed to confirm their reservation into an investment. When you do this, you can proceed with the payment method you originally intended or change to a new one. Investors will have the following options to pay:
- ACH Transfer (US bank account only)
- Credit Card - including Apple Pay and Google Pay (Limit $10,000 per investment.)
- Wire Transfer (investments $1000+ only.)
- Check (US only and investments $1000+)
What if the company cancels its Community Round before filing its Form C? What if I don't want to confirm the reservation into an investment?
If you or the Community Round cancel the reservation, you will be refunded any funds sent, including paid Wefunder fees.