Wefunder Review

Pros

• Equity crowdfunding for non-accredited investors
• Good for startups with exponential growth potential
• Biggest Regulation Crowdfunding platform
• Low investment minimums

Cons

• You get nothing if you don’t reach your funding goal
• Regulation Crowdfunding is legally complex

What Is Wefunder?

Wefunder is one of the few equity crowdfunding platforms that opens the world of investing to anybody seeking to invest in a startup company. While many equity crowdfunding sites are dedicated to accredited investors, Wefunder stands out as the largest company offering equity crowdfunding for non-accredited investors.

To date, Wefunder has over 3,400 founders who have been funded on the platform. At the time of this review, $775 million has been raised on Wefunder.

Services Offered By Wefunder

Wefunder gives US corporations and LLCs an equity crowdfunding platform that connects them to over one million investors. A company can create a profile with Wefunder for free. Fees are only assessed after a successful raise.

There are several types of campaigns that can be launched on the Wefunder platform. This includes:

• Regulation Crowdfunding
• Regulation D Rule 506(c)
• Regulation A+

Wefunder Project Qualifications

Wefunder clearly outlines what businesses will have a greater chance for success on the platform — as well as those that won’t.

Wefunder states that businesses that are unique or that directly impact lives have been successful on the platform. Additionally, businesses that have some traction will be more likely to have success.

One important thing to note is that you must raise at least $50,000 from your own network during the Community Round. These funds must be raised before organic investors on the platform can find you.

Nearly any type of company can use the Wefunder platform with these exceptions:

• Public companies
• Companies without a business plan
• Companies whose primary plan is to acquire other businesses
• Companies disqualified by the Investment Company Rule
• Companies not formed in the U.S.
• Companies disqualified from selling securities under “bad actor provisions”
• Companies that previously raised funds through Regulation Crowdfunding and have not complied with annual reporting requirements
• Companies in certain industries, including cannabis, adult entertainment, cryptocurrency, gambling, pawn brokers, guns, etc.

While it’s obvious that not every business will qualify, Wefunder states it accepts nearly any type of business (provided it meets all of the guidelines outlined above). For qualifications, we rate Wefunder 4.4 out of 5 stars.

Wefunder Terms & Fees

These are the terms and fees for Wefunder Regulation Crowdfunding campaigns:

Wefunder doesn’t charge you to set up a company profile, nor does it charge a fee to begin crowdfunding (previously, it charged a $195 fee to begin crowdfunding, but this has been eliminated).

Wefunder collects 7.9% of what you raise if your campaign is successful. This isn’t too far off what other major crowdfunders charge. Though Kickstarter keeps just 5% of what you raise for themselves, an additional ~3% of funds raised via Kickstarter will go to the payment processor.

For Regulation A+ campaigns, Wefunder charges a flat fee of $395,000.

Also, note that Wefunder crowdfunding campaigns are all-or-nothing — you only receive funds if you meet or exceed your fundraising goal.

Bear in mind that equity crowdfunding is much more heavily regulated than rewards crowdfunding. When you’re soliciting investments, there are strict limits as to when and how you can promote your raise, including limits on what you can say to anybody — even people on the street — regarding your investment opportunity.

If you know a thing or two about rewards crowdfunding but are new to equity crowdfunding, this probably sounds outlandish. Imagine being restricted as to what you could tell people about your Indiegogo campaign.

Unfortunately, history demonstrates the unique potential of unwise and/or fraudulently-represented investments to ruin the lives of ordinary people and create generational immiseration — therefore, equity crowdfunding is treated differently under the law.

Be sure to read Wefunder’s Legal Primer For Founders if you’re looking to raise money on the platform, and consult an attorney if you have any questions regarding the process, SEC regulations, etc.

Overall, we find Wefunder’s fees and terms to be very competitive, leading to our rating of 4.3/5.

Wefunder’s Application Process

Wefunder screens companies for signs of fraud and/or dealings in the things forbidden on the platform, but it generally takes a light hand when determining who can and can’t raise funds.

Though Wefunder recommends having at least one experienced investor endorse your campaign and set the terms of your crowdfunding campaign, this is not a requirement.

The application process is clearly outlined in the FAQs. Here’s what to expect:

• Sign up for a Wefunder account
• Add your company info and pitch deck
• Get suggestions and tips on your Company Overview page
• Edit your raise details
• Submit your information for review

Once all steps are completed, Wefunder will contact you when you’re ready to move into the next stage.

Worth noting is that you must raise $50,000 on your own before your profile is available to investors. You must also raise $50,000 before filing a Form C to withdraw your funds. Wefunder is legally required to wait at least 21 days after the filing of the Form C to allow access to your funds.

The application process is easy, although not as easy as other crowdfunding sites. However, with equity crowdfunding, the legal complexities surrounding the process do require more work and do take a longer amount of time. For the application process, we rate Wefunder 2.6/5, but again, this is due to the stricter requirements.

Sales & Advertising Transparency

Wefunder puts all the relevant information relating to their crowdfunding campaigns in its FAQs, although it would be nice to see information like fees displayed on the homepage. Wefunder also has an active social media presence.

Overall, Wefunder does a great job at providing information about its platform without coming off too sales-y or gimmicky. We rate the company a 4.9/5 for its sales and advertising transparency for these reasons.

Wefunder Customer Service & Technical Support

Beyond the FAQs and the other informational literature on its website, Wefunder lists an email address for customer support — but that’s about it. Once you’ve launched a Regulation Crowdfunding campaign, however, Wefunder will stay in contact with you.

Wefunder does provide a variety of self-help resources. The aforementioned FAQs provides great information about Wefunder’s platform. A company blog with articles with industry news and company updates is available. Wefunder also has active profiles on Facebook, X/Twitter, Instagram, YouTube, and LinkedIn. A podcast is also available.

There are no negative reviews about the qualify of customer service.

Based on these factors, we rate Wefunder 4.2/5 for customer service.

User Reviews

Though most equity crowdfunding platforms only have a handful of reviews, Wefunder has a surprisingly high number of reviews.

The company earns a B- rating through the BBB for failing to respond to two complaints. Its rating on the website is 3.64/5 (based on 58 reviews). Wefunder also scores 3.3/5 (based on 340+ reviews) on Trustpilot.

Most of the reviews are positive, although there are some complaints mixed in as well. Taking into account the number of reviews and the feedback given by users, we rate Wefunder 3.8 out of 5 stars for customer service.

Negative Wefunder Reviews & Complaints

Although the positive reviews outweigh the negatives, there are some complaints. Users most disliked:

• Raising $50,000 on your own (to be fair, this requirement is listed clearly multiple times in Wefunder’s FAQs)
• Outdated UI could use some work
• Lack of communication after a successful campaign

Positive Wefunder Reviews & Testimonials

Here’s what users most liked about Wefunder:

• Excellent customer support
• Lower minimums than competitors
• Easy setup
• Great for non-accredited investors

Is Wefunder Right For Your Business?

Wefunder is not designed for not the mom-and-pop diner on the corner but rather the company with exponential growth potential — the kind of company that excites investors.

Although Wefunder hasn’t quite seen the level of success of the most popular rewards crowdfunding sites, it’s important to remember that Regulation Crowdfunding is not a mature industry. The kinks are still being worked out, and the regulations governing the field are subject to change (this is the industry’s fervent hope, at least).

However, Wefunder is the one platform that has thrived in this new realm. More than any other platform, it stands to take off in the event that Regulation Crowdfunding starts showing the potential that analysts had hoped it might. As of now, for a company with unique potential and a high-risk-high-reward ethos, Wefunder is a tantalizing funding option.

While not for everyone, Wefunder gets it right in a lot of areas, leading to our recommendation for companies poised for growth — and willing to put in the work to get there. Overall, we give Wefunder a rating of 3.9 out of 5 stars.

Our Methodology

We spend hours researching and evaluating each crowdfunding platform that we review at Merchant Maverick, placing emphasis on key characteristics to generate our product ratings.

When rating crowdfunding platforms, we use a rubric that looks at terms and fees, project qualifications, application process, sales and advertising transparency, customer service, and user reviews. We weigh each section differently to calculate the total star rating.

• Terms & Fees: 25% of the total star rating
• Project Qualifications: 25% of the total star rating
• Application Process: 25% of the total star rating
• Sales & Advertising Transparency: 10% of the total star rating
• Customer Service: 10% of the total star rating
• User Reviews: 5% of the total star rating

Each section is further broken down into granular, weighted subsections, in which we look at specific attributes, such as campaign durations, supported project types, time to funding, application processing times, and platform fees. Learn more about how we rate crowdfunding platforms.

The Merchant Maverick Seal of Approval 🏆

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After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Wefunder for yourself.

The Merchant Maverick Seal of Approval 🏆

Wefunder	Apply Now

After hours of in-depth research and evaluation, we can confidently recommend this brand to our readers. Get started today and see Wefunder for yourself.