4 ms·
In order to attract the type of high-quality companies currently fundraising on Wefunder, we've were forced to figure out how to take away all of the downsides.
by npt4279 13y ago
In order to attract the type of high-quality companies currently fundraising on Wefunder, we've were forced to figure out how to take away all of the downsides.
The most important thing we do is manage a fund that aggregates all of the smaller investors. These investors are actually Wefunder's investors. Wefunder then makes one investment into the startup.
So the startup doesn't have to deal with dozens of investors on their cap table.
Or, put in other words, all the logistical and legal hurdles are placed on Wefunder, not the startup.
- spydertennis 13y agoSo wefunder is actually a new type of fund? Maybe an "on-demand fund?"
- jval 13y agoDoes this introduce counterparty risk in some way? For instance, if Wefunder goes broke, do the investments go down with the company or are they all in a separate entity?