Invest in startups you love. Keep the American Dream alive. Back founders solving the problems you care about and help their startups grow.
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Invest in founders building the future. Wefunder is a new kind of stock market, meant for startups and small businesses. Anyone can invest as little as $100 in the startups they love. You decide which companies are worthy of funding. If the business does well, you may make money. If it doesn’t do well, you can lose all your money. Their opinion is that investing should not be solely about earning a return. To invest in something as risky as a startup, you should feel something extra, beyond just the business model. This is your chance to get the next great start up off of their feet.
Things to Know
You make money on
Term of investment
Funded 431 startups
Facilitated over over $157 million in investments
See inside MoneyMade’s 6-figure multi-asset portfolio
How you make money
Once you have made an investment in a startup, you will hold private equity in that company. The value of your stake in the company may increase or decrease over time depending on how the company performs. You will receive cash or stock return on your investment if and when a positive liquidity event occurs – for example, as a result of the company going public or getting acquired by another company. Please bear in mind that startup investments are long-term investments that may take years to become liquid, if they do at all.
How Wefunder makes money
For Regulation Crowdfunding, Wefunder charges investors up to 2% of their investment (minimum: $7, maximum: $75). We also charge the company up to 7.5% of their total funding volume for Regulation Crowdfunding. For Regulation D, Wefunder charges up to 20% Carried Interest . For Regulation A+, Wefunder does not charge any fees.
Is it safe?
Investment opportunities posted on this website are "private placements" of securities that are not publicly traded, are subject to holding period requirements, and are intended for investors who do not need a liquid investment. Investing in private companies may be considered highly speculative and involves a high degree of risk, including the risk of substantial loss of investment. Investors must be able to afford the loss of their entire investment.
How You’re Taxed
Profits earned from investing in startups are taxed like stocks. Investors are subject to short-term capital gains when selling investments held for less than a year, which are taxed at ordinary income tax rates. Long-term capital gains are applicable when investments are held for a year or more with tax rates ranging from 0% to 20%, depending on your total taxable income.
Cleaner interface than their competitors in this space. I have invested so far in one equity-type deal and one convertible note. The equity deal used external platforms to track the allocation of shares to shareholders (First eshares which became Carta, and then KoreConX). Kinda annoying that not everything is in-house in WeFunder. The convertible note process was smooth. Their recommendation engine for other companies to invest in is also good. In cases like this, the startup drives the decision more than the platform. Nevertheless, no other qualms about the platform itself.
11 hours ago
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