The Details
Who manages Wefunder Funds?
Our fully-owned subsidiary, Wefunder Advisors LLC, manages the fund on your behalf. Wefunder Advisors is an exempt reporting investment advisor. Our CRD number with the SEC is
802-78113.
What is the investment horizon?
Startup investments have a very long term horizon. It typically takes 3-7 years for a successful company to have a liquidity event, when it either gets acquired or has an IPO.
When are funds distributed?
We disperse funds to investors when any company in the portfolio has a liquidity event.
Can I withdraw my money?
No. Wefunder Funds are not mutual funds. All capital will be invested in private companies in long-term, illiquid investments.
What are typical valuations and securities?
While there are exceptions, many startups will raise funding with a
SAFE at a valuation cap of between $6 to $12 million.
How are valuations and terms set?
Wefunder does not set terms, instead following the valuation and terms set by larger angel investors and venture capitalists.
How many investments will be made?
Wefunder Funds will make between 10 and 20 investments. The exact number will depend on the quality of applicant and recruitment pool.
What is the typical investment size?
Wefunder Funds will invest in amounts as low as $25,000 and as high as $100,000 in each startup.
When will I be notified of executed investments?
After each investment is made, you'll be notified of the selection via e-mail.
How are taxes handled?
We're not allowed to offer tax advice. You'll receive a single K-1 from Wefunder Funds each year. Your accountant can offer more specific advice.
Does Wefunder accept international investors?
Yes, if legal in your country. You should check with your lawyer and accountant.
Can I make an investment within my IRA?
Yes.
What updates will I recieve?
Once a quarter, we update all investors on the status of the Fund portfolio. Additionally, some startups in the portfolio may choose to send additional investor updates or requests for help to your Wefunder activity feed.
Can I talk to someone on the phone?
Of course! We pride ourselves on customer service. Speak with a Fund Manager by scheduling a call at
scheduleonce.com/wefunder
I've never invested in a startup. Can I learn more?
Yes. You can check out our
FAQ for more information on risks, returns, different securities, and how startup financing works. Or
schedule a call with us.