Wefunder

Wefunder
Industry Crowdfunding
Founded 2011
Founders Nick Tommarello, Mike Norman, Greg Belote
Headquarters Cambridge, Massachusetts, United States
Services Entrepreneurship, startups, investment
Website Wefunder.com

Wefunder is a crowdfunding service which connects startups with investors online.[1][2] Wefunder will use a provision in the 2012 JOBS Act which will allow unaccredited investors to provide equity for entrepreneurial undertakings once it takes full effect.[3][4][5]

Foundation

Wefunder was founded by serial entrepreneurs Nick Tommarello, Mike Norman, and Greg Belote in 2012.[6] The startup incubator Y Combinator backed Wefunder during its development and launch.[7] 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.[8] In total, the company has raised over $1.4 million from over 100 investors via the Wefunder platform.[9]

Tommarello, Norman, and Belote extensively lobbied with the U.S. Securities and Exchange Commission (SEC) and in the United States Congress for the passing of the JOBS Act.[10][11] So much so that they were in Washington, D.C. to watch President Barack Obama sign the bill on April 5, 2012.[8] The JOBS Act, which allows startups to advertise and generally solicit for investments, is set to be fully implemented by mid-2014.[12][13]

Function & reception

Wefunder is predicated upon the idea that anyone, regardless of wealth, should be able to invest in a company.[14] 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.[14][15] Once the full deregulations promised by the JOBS Act are unrolled, the company plans to lower the barrier of investor entry to $100.[16][17] Tommarello said Wefunder's goal is to “fill the funding gap between angel investors and that first major round of capital.”[16][18]

References

  1. Luckerson, Victor (September 24, 2013). "The Crowdfunding Economy Is About to Pop". Time.
  2. Pepitone, Julianne (April 17, 2012). "8 crowdfunding sites to watch". CNN.
  3. Weisman, Jonathan (March 27, 2012). "Final Approval by House Sends Jobs Bill to President for Signature". New York Times.
  4. Prive, Tanya (November 6, 2012). "Inside The JOBS Act: Equity Crowdfunding". Forbes.
  5. Khazan, Olga (March 22, 2012). "JOBS Act: A potential boon for entrepreneurs or a bust for investors?". Washington Post.
  6. "LinkedIn Page". LinkedIn.com.
  7. Lawler, Ryan (March 19, 2013). "http://techcrunch.com/2013/03/19/Wefunder-launch/". TechCrunch. External link in |title= (help)
  8. 1 2 Rao, Leena (November 28, 2012). "Wefunder Raises $500K To Help Unaccredited Investors Put Money Into Startups". TechCrunch.
  9. "Wefunder on Wefunder".
  10. Frick, Walter (January 31, 2012). "900+ Have Already Signed Wefunder Petition Demanding Crowdfunding of Startups". BostInno.
  11. McIntyre, Donald (March 28, 2013). "Mike Norman Talks About Wefunder [Video Interview]". NewFiNation.
  12. McGlade, Allen (September 18, 2013). "Crowdfunding Will Flourish Regardless Of What The SEC Does". Forbes.
  13. Mandelbaum, Robb (September 24, 2013). "S.E.C. Advances New JOBS Act Rule, but Not Crowdfunding". New York Times.
  14. 1 2 Grant, Rebecca (March 26, 2013). "Wefunder gives startups a 'green button' to meet their fundraising goals". VentureBeat.
  15. "FAQ". Wefunder.com.
  16. 1 2 Isaac, Mike (March 19, 2013). "Meet Wefunder, the Crowdfunding Platform for Would-Be Investors". AllThingsD.
  17. "Company of the Week - Wefunder.com". Mit.edu.
  18. Strangler, Dane (August 29, 2013). "Five Things the General Public Should Know About Crowdfunding". Forbes.
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