Wefunder FAQ (2024)

FAQs

Can I get my money back from Wefunder? ›

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.

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.

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.

What happens to an investor's money if your business fails? Unless there was some sort of fraud, or if your investor snuck a term into your investment contract that changes the terms of the venture, professional investors will accept that the money they invested is most likely gone.

Of course there are other arrangements that would allow investors to get their money back – for example if they loaned money to the company, or they invested with a convertible note. But in those cases they would either get their money back or get shares.

We know you might be hesitant to provide this information, but we guard your SSN like our life depends on it. We encrypt and store Social Security Numbers (SSNs) on a separate group of servers from wefunder.com.

While there is no public market for your investment, you may sell your stake to another investor if they are a family member or an accredited investor during the first year of your investment. After the first year, you may sell your stake to any interested buyer. In either case, you'll need to find a buyer first.

Wefunder takes the security of user accounts seriously. Here are some measures in place to ensure account security: Two-Factor Authentication (2FA): Users can enable 2FA, which adds an extra layer of security by requiring a verification code in addition to the password during login.

Your Wefunder Cash account is your online wallet with Wefunder. Our third-party banking partners, First Citizens Bank or Thread Bank, hold the money. Transferring funds to your Cash account right after making a reservation helps you to invest faster – you can apply funds from there once you confirm an investment.

Can you use a credit card on Wefunder? ›

You can pay using a bank transfer (US only), check (for investments $1000+), credit card, Apple Pay, Google Pay, or wire transfer (international investors only). If you choose to pay by credit card, Apple Pay, or Google Pay, there is a $10,000 limit.

It's free to create a company profile on Wefunder.

For Reg CF, Wefunder charges only 7.9% of the total raise if successful. For instance, if a company raises $100,000, we charge $7,900 upon close. We charge no upfront fees. After the successful raise, a company can choose to file their annual report with us for $500.

We've funded 14 companies worth over $1 billion. In total, over $10 billion of venture capital has been invested in companies funded on Wefunder. Wefunder was the first startup to raise funding on Wefunder, raising over $20 million from about 8,500 investors.

While no investment is without risk, Wefunder appears is a legitimate platform and investment option. As always, due diligence from the investor's end is critical. So if you're contemplating investing through Wefunder, it's safe to say that concerns of it being a scam can largely be put to rest.

Refunds for Crowdfunded Projects

Crowdfunding campaigns are not designed around refunds. Full refunds not only remove pledged money from the campaign, but may cost the campaign additional money to cover already collected, non-refundable costs related to the initial collection of the pledged funds.

For investment-based crowdfunding, you will usually only get your money back (including any return on your investment) if the company floats on a stock exchange, is bought by another company or if the management buys back your shares.

With equity-based crowdfunding, backers receive shares of your company in return for their investment. This form of crowdfunding is used most often by startups with high growth potential, as it allows them to raise larger amounts of money in exchange for a stake in their company's future profits.