Wefunder (YC W13): Invest in Startups

#1

Post by npt4279 » Tue, Mar 19, 2013, 4:50 PM UTC

Wefunder (YC W13): Invest in Startups
wefunder.com

Re: Wefunder (YC W13): Invest in Startups

#2

Post by mkeung » Tue, Mar 19, 2013, 5:04 PM UTC

When I click "certify as an investor" I automatically get directed to sign up for early access, with Facebook.

I am hesitant to enter my information, because I don't know what the certification process is like. It would be great if you could add this information somewhere? I highly doubt I qualify so it would be for nothing.

Re: Wefunder (YC W13): Invest in Startups

#3

Post by aashaykumar92 » Tue, Mar 19, 2013, 5:06 PM UTC

Holy crap, this is true visionary...great idea and excellent execution! Hopefully everything goes through on the government-side so that anyone can invest in these startups.

Question, though: Is the plan to allow any company to sign up in 2014 or will there still be some moderation in which companies can sign up?

Re: Wefunder (YC W13): Invest in Startups

#4

Post by jgj » Tue, Mar 19, 2013, 5:07 PM UTC

mkeung wrote: post #2

When I click "certify as an investor" I automatically get directed to sign up for early access, with Facebook. I am hesitant to enter my information, because I don't know what the certification process is like. It would be great if you could add this information somewhere? I highly doubt I qualify so it would be for nothing.

Income for 2011-2013, net worth >< 1,000,000 and agreeing that you understand the risk of investing in startups, plus a signature

Re: Wefunder (YC W13): Invest in Startups

#5

Post by tomgallard » Tue, Mar 19, 2013, 5:14 PM UTC

Maybe I'm missing something- but I can't see the valuations the companies are raising at anywhere (e.g. I can see that Company X wants to raise $490,000 - but how much of the business this is for)

Surely this is question number 1 when you want to invest in a company?

EDIT- Found it once I clicked the "Apply to invest" button". Maybe it should be a bit more up front though

Re: Wefunder (YC W13): Invest in Startups

#6

Post by npt4279 » Tue, Mar 19, 2013, 5:15 PM UTC

aashaykumar92 wrote: post #3

Holy crap, this is true visionary...great idea and excellent execution! Hopefully everything goes through on the government-side so that anyone can invest in these startups. Question, though: Is the plan to allow any company to sign up in 2014 or will there still be some moderation in which companies can sign up?

We'll have a self-service platform which founders can use to fundraise privately. We make it easy to accept investments in about 3 minutes with automated legal docs, e-signature, and ACH payments.

But it'll always be highly curated for featured startups that are public on Wefunder. We are starting out with one per week.

Re: Wefunder (YC W13): Invest in Startups

#7

Post by dicletian » Tue, Mar 19, 2013, 5:15 PM UTC

"All the small investors (often So your company must create and manage a new investment vehicle for each startup to raise money on Wefunder? I assume so, otherwise the investors in one holding will incur the liability of the fund being sued by the investors/investment of another.

According to your FAQ, you are not charging any fees yet and have raised about $500k to support your operations. On top of operating the parent business, for each entity you will have to prepare and send out K1s, make numerous compliance-related and SEC filings, and correctly disburse funds once liquidity arises. As a fund, you'll also possibly have to prepare annual or quarterly mark-to-market valuation reports for your holdings. All told, this could run into the tens of thousands of dollars per entity per year.

What happens if your company runs out of money to properly steward the funds you raise? Do you have a strategy to mitigate legal / compliance costs?

Re: Wefunder (YC W13): Invest in Startups

#8

Post by npt4279 » Tue, Mar 19, 2013, 5:18 PM UTC

tomgallard wrote: post #5

Maybe I'm missing something- but I can't see the valuations the companies are raising at anywhere (e.g. I can see that Company X wants to raise $490,000 - but how much of the business this is for) Surely this is question number 1 when you want to invest in a company? EDIT- Found it once I clicked the "Apply to invest" button". Maybe it should be a bit more up front though

Thanks - we'll consider that.

Re: Wefunder (YC W13): Invest in Startups

#9

Post by jwb119 » Tue, Mar 19, 2013, 5:25 PM UTC

How are you guys avoiding having to register as a broker dealer before the JOBS act goes into place? (I'm assuming you're applying for Funding Portal status afterwards)

Re: Wefunder (YC W13): Invest in Startups

#10

Post by mkeung » Tue, Mar 19, 2013, 5:26 PM UTC

jgj wrote: post #4

mkeung wrote: post #2

When I click "certify as an investor" I automatically get directed to sign up for early access, with Facebook. I am hesitant to enter my information, because I don't know what the certification process is like. It would be great if you could add this information somewhere? I highly doubt I qualify so it would be for nothing.

Income for 2011-2013, net worth >< 1,000,000 and agreeing that you understand the risk of investing in startups, plus a signature

Looking more into the law change (congrats btw), it would be nice to tell people a) if they qualify, b) if they don't right now, that you will notify when they can also participate