While most Funding Portals are losing money, Wefunder is not. One of the original online capital formation platforms established to take advantage of the JOBS Acts exemptions, Wefunder reports that in 2024 it earned a net profit of $2 million.
While hit hard by rising interest rates in 2023, Wefunder returned stronger generating $16.8 million in 2024 compared to just $8.3 million the year before. Wefunder anticipates another jumpm higher in 2025, expecting revenue to arrive at around $25 million.
Wefunder has historically been a leader in the Reg CF (Regulation Crowdfundign) sector which allows firms to raise up to $5 million from both accredited and non-accredited investors.
Since inception, Wefunder reports $865 million has been raised from investors supporting 3582 founders. The platform estimates that its efforts have supported over 52,000 jobs.
Wefunder has self funded its platform and thus has around 6700 investors who have committed almost $20 million.
Wefunder predicts that industry consolidation will eventually take place and funding portal operations will eventually become a duopoloy, putting their money on competitor StartEngine as the other survivor.
While mainly focused on Reg CF offerings, Wefunder also leverages Reg D and, more recently, Reg A.
Several years ago, Wefunder expanded operations into Europe to take advantage of updated securities crowdfunding rules under ECPSR.
Wefunder states:
“Currently, we’re focused on seed and Series A financings, up to about $10 million. However, as we grow our investor base, there should be one day be enough liquidity to fund rounds up to $150 million. We want to re-create the market of the 1990s, when investors could get liquidity in a few years – not over a decade.”
