Invest in Startups You Love (2024)

FAQs

Is investing in startups a good idea? ›

Investing in startup companies is a risky business. The majority of new companies, products, and ideas simply do not make it, so the risk of losing one's entire investment is a real possibility. The ones that do make it, however, can produce very high returns on investment.

As of July 2022, Wefunder has helped 2000+ founders raise over $500 million. Over 500,000 people have invested on Wefunder, with a median investment of $250.

If you invest through a WeFund, you will hold an interest in the WeFund instead of holding the company's securities directly. We will manage and sell the company's securities on your behalf, and distribute any proceeds to you upon such a sale.

High Growth Potential

Thanks to their size and agility, startups can quickly adapt to changes and respond to market demands. As a result, startups have high growth potential, and this translates into high returns for investors who are ready to take risks.

Principal risk: Investing in startups will put the entire amount of your investment at risk. There are many situations in which the company may fail, or you may not be able to sell the stock you own in the company. In these situations, you may lose the entire amount of your investment.

There are many investment groups you could potentially join, allowing you to pool your money and knowledge with other investors. For instance, you can join an angel investing group which focuses on early-stage startups, invest in a venture capital fund or join crowdfunding platforms like SeedInvest or Wefunder.

We encrypt and store Social Security Numbers (SSNs) on a separate group of servers from wefunder.com. We use an RSA key to encrypt the SSN and isolate the private key from production machines. Access to the database storing encrypted SSNs is restricted within Wefunder on a need-to-know basis.

Yes. You can change your mind anytime up until 48 hours before your funds are transferred to the company that you are investing in and you will receive a full refund, including any fees. Unfortunately, investments cannot be canceled after that time.

We help everyone invest as little as $100 in the startups they love. You can think of us as “Kickstarter for investing.” Unlike Kickstarter, you are not buying a product or donating to an artist. Instead, you are investing in a business hoping to earn a return on your investment.

If you send a check or a wire, your money will be refunded to your Wefunder Cash account. From there, you can refund the money to your bank account (US banks only) or wire the funds to your bank (international investors only.)

What percentage does Wefunder take? ›

For payments made by bank ACH, wires, or checks, Wefunder charges investors a transaction fee of 2%, with a minimum of $8 and a max of $150. For credit cards, Apple Pay, or Google Pay, Wefunder charges a 5.5% fee + $2, with a minimum of $10 and no maximum - per transaction.

The best investment crowdfunding offers several advantages and disadvantages for investors and those raising capital. For investors, benefits include starting with a small amount, potentially earning above-average returns, and gaining more investment transparency.

Startup investing is potentially lucrative, but it's important to understand that it comes with big risks. The vast majority of startups fail—even if you do your research, you could end up with a pocket full of nothing.

Typically, investors are reimbursed based on their ownership of the firm or their investment's share of the business. This may be paid out through preferred payments, depending solely on the amount they currently possess.

The amount of money you invest in a seed-stage startup should be proportional to your overall investment portfolio. For example, if you have a $100,000 investment portfolio, you should not invest more than $10,000 in a seed-stage startup.

Less than 5% of startups succeed enough to meet a specific revenue growth rate—or even break even on cash flow. An estimated 30-40% of high-potential startups fail as far as needing to liquidate all assets, as well as investors losing all of their original invested money.

The amount of money you invest in a seed-stage startup should be proportional to your overall investment portfolio. For example, if you have a $100,000 investment portfolio, you should not invest more than $10,000 in a seed-stage startup.