The main downside of using Wefunder is that the law requires that you disclose your financials to the public. If you are not comfortable doing this, you can't raise money on Wefunder.
Otherwise, most of the other potential downsides have been solved:
- One entity on your cap table
- You choose a Lead Investor to direct the vote of all shares
- Startups first funded by Wefunder have since raised over $5 billion from VCs
- Accept unlimited unaccredited investors with no concerns about going public due to the 12(g) threshold
- Only one annual report is required, which takes about an hour to fill out with Wefunder’s help.
If you don't file your annual report, the penalty is you can't raise again using Regulation Crowdfunding until you file it. However, you can raise money under Reg D from Venture Capitalists without filing your annual report.