Wefunder, one of the leading funding portals raising money for early-stage firms, is nearing the close of its most recent Reg CF investment crowdfunding round. The round is being hosted on HoneyComb Credit – another funding portal that typically provides small business loans.
Currently, the offering page indicates the sale will close tomorrow (November 1, 2022) at the end of the day. At this moment, Wefunder has raised $2.62 million from 2069 investors. The offering is seeking up to $5 million at a pre-money valuation of $290 million. Investors will be receiving common equity in the firm at a per-share price of $3.58.
Wefunder aims to be the “pre-NASDAQ stock market,” helping firms raise up to $10 million in side-by-side Reg CF and Reg D securities offerings. Under Reg CF, a firm may raise up to $5 million, but Reg D issuers can raise an unlimited amount of money, but investors must be accredited.
While Wefunder is typically one of the top platforms in the Reg CF sector, the recent acquisition of SeedInvest by StartEngine stirs things up a bit as the market may be in for some more consolidation. FINRA regulates around 70 funding portals but only a handful generate significant funding volumes.
Part of Wefunder’s vision is to pursue larger funding rounds while expanding into Europe. It has publicly indicated its interest in taking advantage of the relatively new ECSPR or European Crowdfunding Service Provider Rules that allow companies to raise up to €5 million across all member states. Wefunder has indicated that it is currently operating at near break even. The funding is expected to be utilized to execute on the company’s expansion plans.
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