Wefunder Rebrands Equity Crowdfunding to Community Round

This week Jonny Price, Vice President of Fundraising at Wefunder – a top Reg CF funding portal operating in the US (and soon in Europe), pitched a rebranding of “equity crowdfunding” to “community round.” Price directed his opinion at Republic.

 

 

Republic responded with the following statement:

“We’ve always been behind community investing  — and we’ll raise you one more that investors deserve more opps than just rebranding CF. We see a future where crypto, real estate, and diverse opportunities are part of a bigger ecosystem for communities. TLDR; yes + even more”

Wefunder has already rebranded its offering to “Commity Round” stating, “since we created this industry, we have the right to rename it.  As of today, Wefunder is the home of the Community Round.”

In a blog post, Wefunder CEO and co-founder Nick Tommarello  explained their perspective:

Here are the top 5 reasons why founders should open a Community Round.

  • Grow faster. When your customers are owners, they want to help your startup succeed. They can refer new customers, help with recruiting, evangelize on twitter, and be more engaged.
  • Prestige. It’s hard to build a business that your customers love so much, they want to invest in it. That sends a good signal.
  • More leverage. When you can raise $10M+ by sending one email to your customers, it provides leverage when you are raising a Series A from VCs.
  • Raise faster. A well-executed Community Round can create scarcity and help professional investors make a decision faster.
  • Fairness & the right thing to do. We believe your community has the right to invest alongside VCs. Capitalism rewards owners. If you believe your startup is going to succeed, why not let your early supporters also get rich?

Wefunder added that with a Community Round, thousands of investors can be one line on your cap table via a special purpose vehicle (SPV), “There is no limit to the number of investors, they can invest as little as $100, and they can be unaccredited.”

Last year, Reg CF (Regulation Crowdfunding) received an update from the Securities and Exchange Commission. Among other changes, Reg CF issuers are now allowed to raise up to $5 million making the exemption far more appealing to early-stage ventures. While more must be done by policymakers, most industry observers anticipate a faster growing industry in the coming years – whether it is labeled a community round – or something else.

 

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