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Wefunder is a crowdfunding service which connects
startups A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship refers to all new businesses, including self-employment and businesses that never intend t ...
with
investors An investor is a person who allocates financial capital with the expectation of a future return (profit) or to gain an advantage (interest). Through this allocated capital most of the time the investor purchases some species of property. Type ...
online. Wefunder uses a provision in the 2012
JOBS Act The Jumpstart Our Business Startups Act, or JOBS Act, is a law intended to encourage funding of small businesses in the United States by easing many of the country's securities regulations. It passed with bipartisan support, and was signed in ...
which allows unaccredited investors to purchase equity in early stage private companies.


Foundation

Wefunder was founded by Nick Tommarello, Mike Norman, and Greg Belote in 2012. The startup incubator
Y Combinator Y Combinator (YC) is an American technology startup accelerator launched in March 2005. It has been used to launch more than 3,000 companies, including Airbnb, Coinbase, Cruise, DoorDash, Dropbox, Instacart, Quora, PagerDuty, Reddit, St ...
backed Wefunder during its development and launch. The company raised more than $500,000 in 2012, receiving startup capital from nearly 60 investors, including angel investors Nihal Mehta, Dharmesh Shah, and Bill Warner. As of 2019, the company has raised over $9.8 million from over 100 investors via the Wefunder platform. Annual fund rate increased to over $200 million in 2021.


Function and reception

Wefunder is predicated upon the idea that anyone, regardless of wealth, should be able to invest in a company. As of now, only accredited investors are legally able to fund startups, and these investors must put up at least $1,000 to have an equity share. Once the full deregulations promised by the JOBS Act are unrolled, the company plans to lower the barrier of investor entry to $100. Tommarello said Wefunder's goal is to “fill the funding gap between angel investors and that first major round of capital.”


See also

*
Coinbase Coinbase Global, Inc., branded Coinbase, is an American publicly traded company that operates a cryptocurrency exchange platform. Coinbase is a distributed company; all employees operate via remote work and the company lacks a physical headq ...
*
GoFundMe GoFundMe is an American for-profit crowdfunding platform that allows people to raise money for events ranging from life events such as celebrations and graduations to challenging circumstances like accidents and illnesses. From 2010 to the be ...
* Kickstarter *
Patreon Patreon (, ) is a membership platform that provides business tools for content creators to run a subscription service. It helps creators and artists earn a monthly income by providing rewards and perks to their subscribers. Patreon charges a com ...


References


External links

* {{Crowdfunding platforms Crowdfunding platforms of the United States Financial services companies established in 2011 Companies based in Cambridge, Massachusetts Y Combinator companies Equity crowdfunding platforms 2011 establishments in the United States