Today, we released Funds. Each of our funds targets a different theme, targeted to invest between $10k to $200k in early stage startups.
We're re-thinking how venture capital can work. We believe we can fund more worthy companies - and increase investor returns - by decentralizing decision making to experts who are on the cutting edge of their fields.
We have recruited hundreds of partners to help run our funds, compensating them with 15% carried interest. These partners are operators, technologists, influencers, early adopters, & founders who personally invest in startups they believe in. Only if they invest, does the fund invest.
We're also excited to fund a wider range of businesses than traditional venture capitalists, by letting investors choose the areas they care about (along with the risk/reward profile they are comfortable with).
For accredited investors
Currently, the law only allows accredited investors to invest in funds.
We believe funds will result in higher-quality startups using Wefunder, and therefore better returns for investors.
We expect that a team of industry veterans (compensated with 15% carry) will get access to better startups, vet them more fully, negotiate better terms, and actively help the founders get to the next level.
We're broadening who can be a venture capitalist. We believe those who can make the best early-stage investments often do not want to become a full-time venture capitalist - they may want to primarily remain a maker, creator, founder, or operator. However, they want to pay it forward, and help the next generation of startups succeed.
We're creating a world where even super-busy founders of hyper-growth startups can earn carried interest to help startups succeed, part-time, by doing the most meaningful and most important part: lending their expertise to those that need it most.
Unfortunately, it is illegal for unaccredited investors (those that don't earn $200k+ a year or have over $1m net worth) to invest in funds.
Thankfully, the definition of an accredited investor will likely change soon. In July, the House of Representatives passed a bipartisan bill (406 to 4), which would let anyone take a test to become accredited. We hope this will become law in 2019.
In the meantime, unaccredited investors can join a fund as a partner (it is not illegal to be a venture capitalist!). They also can follow a fund, and get notified if a startup also uses Wefunder to run a Regulation Crowdfunding campaign. In that case, investors can opt to invest after seeing the due diligence that partners performed.
Wefunder supports three different federal laws that allow startups to raise money legally. To comply with the law, Wefunder Advisors LLC and Wefunder Portal LLC (both owned by Wefunder Inc) also list startups depending on the regulation used.
Legal May 16th 2016
Wefunder Portal LLC
for 316 startups
Wefunder Advisors LLC
for 105 startups
for 3 startups
We are the largest funding portal for Regulation Crowdfunding.
Some fine print: 1) These numbers include startups currently live on Wefunder if they pass their minimum target. 2) Some startups use two different laws at the same time (i.e., Regulation D and Regulation Crowdfunding).
XX was built by Wefunder to invest in 20,000 new founders by 2029. In all 50 states across America. Of all backgrounds.
XX Team LLC and XX Investments LLC are independent companies that license software from Wefunder Inc. Wefunder Inc is the parent company of Wefunder Advisors LLC, an exempt reporting adviser that advises SPVs used in Reg D offerings. Wefunder, Inc. is not regulated as either a broker-dealer or funding portal and is not a member of FINRA. Wefunder Inc. and none of it's associated persons, board members, or officers have a financial interest in XX Team LLC or XX Investments LLC.
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