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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