Wefunder is in the midst of a self-crowdfunding round and things are moving along quite well. The minimum raise was pegged at a $1 million goal and as of today stands at $1.77 million.
WeFunder has created a WeFund SPV to hold the shares in the company – that has a pre-money valuation of $30 million. If you want to skip the SPV and be a direct investor, kick in $250,000 and bypass the WeFund SPV. Otherwise, the minimum amount is for $3000 (@$0.77/share).
WeFund, which is the dominant Reg CF crowdfunding platform today, is using Reg D (506c) to raise capital as they clearly are interested in raising more than the $1 million cap on Reg CF. This is not the first time WeFunder has raised money for itself. Since 2012, WeFunder has raised over $6.5 million from more 259 investors.
The pitch notes that Wefunder has captured the majority of the Reg CF market that includes over 20 different FINRA regulated portals and several Broker-Dealers participating in the space;
“Over the first six months of Regulation Crowdfunding, Wefunder is the largest funding portal by every measure. We’ve over 6X our nearest competitor, and between 74% to 80% market share on all important metrics.”
These numbers equate to $9 million in investment for 60 Reg CF offerings. Investors under Reg CF have topped 7,700 but overall that count stands at 80,000 registered users on the Wefunder platform. The market is still quite young but the rapid growth has been encouraging.
Wefunder has also indicated its interest in Reg A+ – an exemption where an issuer can raise up to $50 million so far more than Reg CF.
How does Wefunder generate revenue? They charge a fee of 4% for every company that successfully raises funding on their site. Investors must pay 2% of their investment to participate in offers listed on WeFunder. If Congress gets its act together and updates Reg CF and allows carried interest (thus aligning with investors and issuers using the site) the company believes it can become huge;
“We’re talking about turbo-charging the entire economy. We want to accelerate GDP growth by making us a nation of owners in the true engine of our economy: small businesses and startups. We want to explode the number of new businesses.”
Wefunder also wants to create a bespoke secondary market. As they describe it “a NASDAQ for riskier ventures.” Lack of ambition is not an issue here.
Wefunder was co-founded by Nick Tommarello, Mike Norman and Greg Belote. Each founder is passionate about the power of entrepreneurship and the importance of access to capital. Tommarello has personally spent time on Capitol Hill speaking to legislative staff about how important crowdfunding can be for entire country.
If you are interested in owning part of Wefunder you can check out all the details here.
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