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> From the standpoint of a founder, I know that raising small chunks of money from lots of investors is more likely to be problematic than it is likely to be be
by gbelote 13y ago
> From the standpoint of a founder, I know that raising small chunks of money from lots of investors is more likely to be problematic than it is likely to be beneficial. There are numerous logistical and legal downsides to this.
We've fixed this with WeFunds - our LLC fund that bundles many small investors into a single item on a cap table, relieving the logistical and legal downsides.
We also believe in the crowd as a value-add investor. For example, Casetext (YC S13, SV Angel) is raising on Wefunder because they'd love to have lawyers who are outside the Silicon Valley bubble invest in them.
- 7Figures2Commas 13y ago> We've fixed this with WeFunds - our LLC fund that bundles many small investors into a single item on a cap table, relieving the logistical and legal downsides. That may solve a few of the problems with having numerous small investors, but it doesn't solve them all. For instance, if I raise $25,000 each from 20 investors who are spraying and praying with a dozens or more other startups, I have to consider that potentially none of these investors will have the motivation or wherewithal to provide additional assistance (financially or otherwise) if and when I need it.