Invest in fun, innovative startups you love. Not only that, you can meet cool people and learn how to invest. Maybe even raise money for your own startup? Wefunder is like Indiegogo but for investing. Instead of buying a product or donating to a cause, you are investing in a startup with the hope of earning revenue in the future.
They do quite clearly indicate that when investing in these startups you should not put more money in than you are prepared to lose. When registering you have to accept that you understand these securities are not easy to re-sell. You could wait years to get any return.
Wefunder Social Feed
You are actually a part of a very intelligent and motivated community. Once you sign in you have access to the feed. In the desktop version, they call it “discuss“, on mobile “activity”. I call it community feed! It has so much information that you can sit there for hours. Founders are sharing stories, data, a lot of updates about how the company and investments are doing, Q&A’s, and more. On the desktop version, log in and check it out here.
Possible Investor Contracts
There are 6 types of equity crowdfunding contracts available on Wefunder:
- Convertible Note: Unsecured loan that converts to stock at some point in the future.
- Revenue Share: Promissory note. Paid back from a share of the revenue.
- SAFE (Simple Agreement for Future Equity): Obtains a right to get equity in the future if the company sells shares in future financing.
- Common Stock: A security that represents ownership in the business. Common stockholders are the last on the ladder if the company goes bankrupt.
- Preferred Stock: Piece of ownership in a company. It does not carry voting rights, whereas Common Stock does.
- Promissory Note: A promise that one party will pay a defined sum of money to the other. It can be at a determinable or fixed time.
Wefunder Accepted Payment Methods
It is basically possible to invest through Wefunder from any country.
Wefunder Portal may charge issuers up to a 7.5% fee. For Reg D investments, Wefunder Advisors may charge up to 20% carried interest. You can pay using a credit card, wire transfer, bank transfer, or check. Payments made by card have a $5,000 limit.
Have You Invested in Equity Crowdfunding?
It is worth to note that such type of investments were not available before 2016. Only accredited investors (rich people) were able to do so.