Re:Invest in Startups
by npt4279 on Monday September 23, 2013 @02:27PM
(#6433117)
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.
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.