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Disaster Loans

Emergency funding for your business during the coronavirus crisis

Raise funding from your fans on very generous terms. Payments based on revenue and deferred until 2021. Reward investors with perks when business is back.

The Crisis
Terms
Founders
How it Works
FAQ

The Crisis

Based on the latest research, it is likely that cities across America will be in periodic lockdown over the next 18 months, until a vaccine is in mass production. Local businesses will be hit hard.

To avoid a rebound in transmission, these policies will need to be maintained until large stocks of vaccine are available to immunise the population – which could be 18 months or more.... We therefore conclude that epidemic suppression is the only viable strategy at the current time. The social and economic effects of the measures which are needed to achieve this policy goal will be profound.

Imperial College COVID-19 Response Team Report



How Wefunder can help

Wefunder has funded ~$130M in hundreds of small businesses from over 400,000 investors. If your business has customers who care, we can help. Or, if there’s a small business you care about, nominate them for funding.

In March, as the stock market has fallen, investments 2Xed on Wefunder. People want to support the businesses they care about. Wefunder allows everyone to make investments (or loans) as small as $100 into the businesses that they love.

Typically, half of the funds come from your own customer base, with the other half from the Wefunder investor-base. We do all the work of collecting funds and send you one wire when it's over.

Quick Facts

  • Wefunder is the largest funding portal: over $130M funded
  • Raise $20,000 to $5M from your customers and 400,000+ Wefunder investors
  • Payments deferred 1yr
  • Payments vary based on revenue
  • Give discounts or perks to your investors when you are back in business
  • Special discount: 3.75% of funds raised - to cover our costs, so we can stay in business too!
  • Pay $0 unless money raised

Terms

We support any investment contract, whether equity or debt.

However, for this crisis, we've designed a revenue share agreement that is very small business friendly. In these hard times, we expect customers will support businesses they care about with flexible repayment.

Revenue Share Calculator


When you are back in business, give your investors perks when they invest certain amounts. Some examples:
  • Invest $100 or more: Get a 10% discount
  • Invest $500 or more: Get invited to a VIP re-opening party
  • Invest $1000 or more: Get a mug with your name behind the bar
Revenue Share Repayment

Revenue Share Repayment

What founders say

We've helped hundreds of founders raise over $130 million.

I felt a kinship with Wefunder... allowing people to invest in the things they believe in, have a passion for, or an emotional connection... that's what we're about also.
Ed Damiano
CEO of Beta Bionics - raised $1M on Wefunder · $100M+ raised after
Raising money this quickly makes my life easier. It was also cheaper than our last traditional financing. I will definitely do this again.
Josh Hare
CEO of Hops & Grain - raised $1M on Wefunder

How it Works

1

Tell your story

Why should your customers invest in you? Let them know how the crisis is impacting the business, and how your business will recover next year.
2

We'll help with the legal stuff

We'll do all the work to make sure you are compliant and can legally fundraise.
3

Start a campaign

Blast it out to the world! Tell your users, customers, family, friends, fans, supporters, and local community. We'll then blast our 2,261,191 investors.
4

Get your money

Our fastest campaign raised $1M in a day. Most take 1-2 months.
5

Have your customers support you

Your customers will feel like an owner. Some companies who use Wefunder report a 15% increase in revenue.

FAQ

Expand all
What kind of businesses can get funded?

Anything in the United States. We've funded coffee shops, breweries, rockets, ostrich farms, movie studios, films - you name it. The one thing in common? Each have a community of people who believe in them.

Can you group all investors into one entity?

Yes! We group all shareholders on Wefunder into one entity.

Each time you repay a loan or give a dividend, you'll pay Wefunder one amount, and we'll distribute to each investor.

What terms can I use?

While we've designed a revenue share agreement for the coronavirus crisis, you are welcome to raise with any investment contract.

We support any security, such as a loan, promissory note, convertible note, SAFE, revenue share, or preferred stock. You can upload your own custom investment contract, or, if you'd rather not hire a lawyer to re-invent the wheel, choose from our library of investment contracts.

We recommend agreeing on terms with your lead investor - you'll raise more money if smaller investors are investing on the same economic terms as a professional.

What federal laws do you use?

In 2012, Wefunder helped Congress pass the JOBS Act, a law that allows businesses to raise funding online from anyone, not just the wealthy. This law created new federal laws to raise money: Regulation Crowdfunding, Regulation A+, and Regulation D, Rule 506(c).

Wefunder supports all of these new regulations, so we can help you raise money at any stage of your company.

Can I raise more than $5m?

Yes! For companies that raise over $5,000,000 in a Regulation Crowdfunding offering, we host concurrent Regulation D 506(c) offerings for free, where unlimited amounts of money can be raised from accredited investors.

For companies that raise over $5m with Regulation Crowdfunding, we also host Regulation A+ offerings for free, where up to $50 million per year can be raised from any investor.

LegionM, for instance, has raised over $8M from over 20,000 investors on Wefunder, using both Regulation Crowdfunding and Regulation A+.

What work do I need to do to raise money legally online?

We help create and file all paperwork with the SEC (called a "Form C") so you can do a Regulation Crowdfunding campaign. This is the easiest way to legally accept money from any potential investor online.

For later-stage companies, we can also support Regulation A+ and Regulation D.

What are the downsides to using Wefunder?

For Regulation Crowdfunding campaigns, there is one potential downside:

  • Disclosure of GAAP financials. The law requires that you disclose your GAAP financials when you fundraise, in some cases reviewed by a CPA. If you don't have them, we can introduce you to CPAs who typically charge under a few thousand.
What does this cost?

$0 up front. For this coronavirus emergency, we charge 3.75% of the funds raised only if you raise money. We charge $0 if you can't raise funding.

Wefunder does not take a percentage of your company.

There are no other hidden fees.

If you can get a better offer in writing, we'll beat it.

Does Wefunder take a percentage of my company?

No.

How fast can an investment be made?

30 seconds. Try it! Your friends can click a few buttons to transfer money with their credit card or a bank account. Or they can wire funds or mail a check. All the funds go into an escrow account until your round closes.

When can I get my money? Do you support "rolling closes"?

After your campaign hits your minimum funding target, and the funds are collected in an escrow account, you can ask us to initiate a "rolling close". After investors reconfirm their investment, we'll transfer all money in escrow to your bank account. Your Wefunder round can remain open to attract additional funding.

How is this different than Kickstarter or GoFundMe?

Unlike Kickstarter, you are not selling a product. Unlike GoFundMe, you are not asking for a handout. With Wefunder, you are offering your friends the ability to invest (i.e., be owners) in your company. If you make money, they will make money.

Since your investors are literally owners, they are in it for the long haul, and are much more incentivized to care about your company than just a customer. You'll also be able to raise more money when it's not a donation.

How does Wefunder help me after I raise?

We're more than just money. You'll be able to book office hours with an experienced founder from XX every now and then. We can't guarantee your top choice. Instead, we'll match your request for office hours with the best advisor who is available and best able to help.

We will also help you unlock the value from your army of superfans who want to help you succeed.

I've never raised money before. Where can I learn more?

Check out our guides and reading materials here: https://help.wefunder.com/#/guides/305019-founder-guides

There's a wealth of fundraising advice out there. We know it can be intimidating to someone new at this. When you use Wefunder, you also get a dedicated team of fundraising experts that will give you the best advice for your particular stage and kind of company.

I have more questions! Can I talk to a human?

Sure! Shoot us an email at [email protected], and a friendly human will get back to you. Or book a call below.

Apply to Raise $20,000 to $5m

We'll help you raise money from your friends, family, and fans.... and introduce you to our 2,261,191 investors.

Or nominate a business you love

Is there a small business that you love and are worried about if they can survive the pandemic? Is there a business you want to do more for than just buying giftcards and ordering takeout?

Using Wefunder, you can directly invest in those companies and help them survive this difficult time.

About Wefunder

We're like Kickstarter for investing. We've funded 1,342 companies with $599,578,186. Our companies have gone on to raise over $2 billion in venture capital.

We're a Public Benefit Corporation with a mission to keep the American dream alive. Our goal is to help 20,000 founders get off the ground by 2029.

Questions? Contact a friendly human at [email protected].

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