2,958 crowdsourcing and crowdfunding sites
Wefunder, an equity-based crowdfunding site, announced yesterday it has raised $533,800 through a self-run crowdfunding campaign.
The money came from a rather small ‘crowd’ of 58, though both accredited and unaccredited investors participated. The Wefunder team was able to raise money from unaccredited investors by using blue sky state securities laws that permit up to 35 individuals to pitch in cash in return for equity. It’s a complicated process, but one that the Wefunder team clearly was able to navigate.
Crowdfunding for the public at large, of course, will not be legal until the SEC hammers out the rules around the JOBS Act, which was signed into law earlier this year. Wefunder’s accredited investors included Nihal Mehta, Jim Pallotta, Dharmesh Shah and Bill Walker.
Once it can offer equity crowdfunding to the public at large, the platform, which participated in the crowdfund lawmaking process, will enable startups to develop networks of potential investors in hopes of raising cash. It emphasizes this focus on relationship building makes it a unique player in the equity crowdfunding space.
In the blog post announcing the fundraising news, the Wefunder team also introduced its upcoming Startup of the Month program. The contest will enable winners to obtain a $25,000 investment, get access to some of the prominent angel investors that participated in Wefunder’s financing round, and receive press coverage from partner organizations. The first winner will be selected in January, when the SEC lifts the ban on general solicitation.
Wefunder is not the first platform to have raised money using blue sky laws – check out our profile on Bolstr, which has figured out a way to streamline the complicated state securities compliance process.