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Regulation Crowdfunding Legislation Takes Effect May 16; Wefunder Kicks off 20+ Offerings for Startups Across America
Press Release – San Francisco, Calif. – May 16, 2016 – A new federal law called Regulation Crowdfunding goes into effect today, allowing everyday people (not just the wealthy) to invest as little as $100 in startups and small businesses. Wefunder, an investment funding platform for startups and small business, announced today that it is launching Regulation Crowdfunding offerings for 20 companies across America. To view the full list, visit wefunder.com.
Also known as Title III of the JOBS Act, the law allows private companies to raise up to $1 million per year from their friends, customers, neighbors, and communities, by selling either debt or equity.
Wefunder is registered with the SEC and FINRA as a funding portal, eligible to facilitate Regulation Crowdfunding offerings. Wefunder’s founders played a key role in helping to write the JOBS Act Title III legislation and facilitating its passage by Congress in 2012.
Wefunder Founder Nicholas Tommarello said, “It’s been a four year battle to get to this point, first with Congress to pass the law, then with waiting for the SEC to implement it. Now, finally, we all have the right to invest in what we care about. We’re eager to help save the American dream for the next generation by helping fund thousands of new businesses, big and small.”
Among the companies launching offerings via Wefunder:
Urban Juncture – Rebuilding a historic Chicago neighborhood into a Black culture & food hot spot
Taxa Biotechnologies – Bio-engineering for the home, starting with a glowing plant
Legion M – The world’s first fan-owned entertainment company
N1ce – Frozen cocktails from superstar DJs Ingrosso, Axwell & Alesso
“There’s a big financing gap between banks – who have been taking less and less risk since 2008 – and venture capitalists who only invest in a small sliver of the economy,” said Wefunder founder Mike Norman. “Plus, until today, only the wealthy could invest in most high-growth private companies. We expect Regulation Crowdfunding not only to lead to a revival of entrepreneurship in America, but also distribute the rewards of capitalism more fairly. ”
Bernard Loyd, President at Urban Junction said, “This is a huge opportunity for small businesses that have been starved of capital. We need significant amounts of capital at reasonable rates to serve market needs and begin to rebuild commercial infrastructure in the inner city neighborhoods in which we work; however, conventional capital providers have shown little interest. Regulation Crowdfunding will allow us to engage people who want to invest, whether they live next door or across the U.S., and Wefunder has helped tremendously in guiding us through the required filings and helping us develop a powerful offering profile.”
Wefunder has spent four years creating software to drive costs down and focuses on taking away much of the hassle. Their model is unique in that they help companies do much of the paperwork – including preparing the mandatory government filings and creating company fundraising profiles –for a fraction of the cost of competitors.
Wefunder helps anyone invest as little as $100 in startups you love. Its vision is to build a new type of stock market (“a NASDAQ for riskier ventures”) that lets the public allocate capital to a wider range of businesses, more broadly and efficiently than banks or venture capitalists. Accredited investors on Wefunder have invested over $16 million into 110 companies since 2013, which include Zenefits, Checkr and Casetext. Learn more about Wefunder’s story at wefunder.com/wefunder or follow them @wefunder.