Wefunder

Wefunder is a crowdfunding service which connects startups with investors online.[1][2] Wefunder uses a provision in the 2012 JOBS Act which allows unaccredited investors to provide equity for entrepreneurial undertakings.[3][4][5]

Wefunder
IndustryCrowdfunding
Founded2011
FoundersNick Tommarello, Mike Norman, Greg Belote
Headquarters
San Francisco, California
,
United States
ServicesEntrepreneurship, startups, investment
Websitewefunder.com

Foundation

Wefunder was founded by serial entrepreneurs Nick Tommarello, Mike Norman, and Greg Belote in 2012.[6] The startup incubator Y Combinator backed Wefunder during its development and launch.[7] The company raised more than $500,000 in 2012, receiving startup capital from nearly 60 investors, including angel investors Nihal Mehta, Dharmesh Shah, and Bill Warner.[8] As of 2019, the company has raised over $9.8 million from over 100 investors via the Wefunder platform.[9] In 2019, Mike Norman began an indefinite sabbatical from his position as President.[9]

Function and reception

Wefunder is predicated upon the idea that anyone, regardless of wealth, should be able to invest in a company.[10] As of now, only accredited investors are legally able to fund startups, and these investors must put up at least $1,000 to have an equity share.[10][11] Once the full deregulations promised by the JOBS Act are unrolled, the company plans to lower the barrier of investor entry to $100.[12][13] Tommarello said Wefunder's goal is to “fill the funding gap between angel investors and that first major round of capital.”[12]

See also

References
  1. Luckerson, Victor (September 24, 2013). "The Crowdfunding Economy Is About to Pop". Time.
  2. Pepitone, Julianne (April 17, 2012). "8 crowdfunding sites to watch". CNN.
  3. Weisman, Jonathan (March 27, 2012). "Final Approval by House Sends Jobs Bill to President for Signature". New York Times.
  4. Prive, Tanya (November 6, 2012). "Inside The JOBS Act: Equity Crowdfunding". Forbes.
  5. Khazan, Olga (March 22, 2012). "JOBS Act: A potential boon for entrepreneurs or a bust for investors?". Washington Post.
  6. "LinkedIn Page". LinkedIn.com.
  7. Lawler, Ryan (March 19, 2013). "Y Combinator-Backed WeFunder Launches To Bring Crowdfunding Startups To The Masses". TechCrunch.
  8. Rao, Leena (November 28, 2012). "Wefunder Raises $500K To Help Unaccredited Investors Put Money Into Startups". TechCrunch.
  9. "Wefunder on Wefunder".
  10. Grant, Rebecca (March 26, 2013). "Wefunder gives startups a 'green button' to meet their fundraising goals". VentureBeat.
  11. "FAQ". Wefunder.com.
  12. Isaac, Mike (March 19, 2013). "Meet Wefunder, the Crowdfunding Platform for Would-Be Investors". AllThingsD.
  13. "Company of the Week - Wefunder.com". Mit.edu.
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