WeFunder is one of a handful of crowdfunding platforms that have received regulatory approval to operate as a Title III (Reg CF) funding portal by May 16th launch. WeFunder is a big believer in the potential of Reg CF and what it can do for capital formation and entrepreneurship in general – even with the intrinsic challenges.
WeFunder has been operating an accredited crowdfunding platform since the fall of 2013 and then added Reg A+ last year. Â To date it has helped fund 110 companies with over $16.5 million in capital. One notable company that used the WeFunder service was Zenefits. They initially raised funding in 2013 on Wefunder at a valuation of $9 million. Zenefits then went on to raise VC capital at a valuation of $4.5 billion last year. Â While the valuation of Zenifits has declined since that time, early investors that jumped on board during the WeFunder offer probably did pretty well. Â Now not every investment is going to end up becoming a fabled unicorn but it must be nice when you catch the ride.
Speaking with WeFunder co-founder and CEO Nick Tommarello last week, he told Crowdfund Insider that;
“People are going to be surprised by the quality of the companies that decide to use Regulation Crowdfunding on May 16th.”
Tomarello stated they have positioned their platform to provide a high quality service at a very affordable price. This will be important for Reg CF issuing companies. He explained that for $199 they will generate a complete Form C that just needs a quick review and sign off from an attorney before it is filed with the SEC. They can also provide reviewed financial statements for a flat $1000 fee.  WeFunder said it has spent the last “four years writing all kinds of software to automate stuff, and have some great lawyers we’ve paid a lot of money to create the correct legal structures and clauses.”  They are also ready to fire up a side-by-side Reg D / Reg CF offer if a company wants to raise more than a million dollars. If you are interesting you may find more information here.
According to the WeFunder site their ambition is to;
“… revitalize capitalism and keep the American dream alive. GDP growth is slowing. Wealth inequality is increasing. Entrepreneurship is dying across America; falling from 10.6% to 3.6% among those under 30 since 1989. We aim to reverse these trends by funding more deserving businesses. Our goal is to build a new type of stock market (“a NASDAQ for riskier ventures”) that lets markets allocate capital to a wide range of businesses, more efficiently than banks or VC’s.”
It will be interesting to see what companies list on the WeFunder platform this coming week.