David Gluck on Title III: non-accredited investors can participate in equity crowdfunding

TL;DR

The SEC has introduced a new crowdfunding feature that allows non-accredited investors to invest in start-up companies through a qualified crowdfunding portal like WeFunder. It offers a simple process for entrepreneurs to raise funds and provides investors with attractive perks.

Transcript

this is the new feature that the SEC brought out on May sixteenth it's just about four weeks old and it allows any non accredited investor in any state of the nation to invest in start-up companies through a qualified crowdfunding portal so we funders one of those portals it's a it's a start up on its own it of its own right and it's right here in ... Read More

Key Insights

• 👻 The new SEC crowdfunding feature allows non-accredited investors to participate in start-up investments.
• 👥 WeFunder offers a user-friendly platform, taking only a three percent fee and providing helpful services to start-ups.
• 💰 The maximum fundraising limit through equity crowdfunding is one million dollars.
• 💄 WeFunder does not take an equity stake in start-ups but offers attractive perks to investors, making it a unique investment opportunity.
• 👨‍💼 WeFunder's launch comes after the SEC's efforts to promote more business activity through the Jobs Act.
• 🥳 WeFunder's Club 1923 is an exclusive underground party that offers unique experiences to its members.
• 🙃 Start-ups using WeFunder can give crowdfunding perks to investors based on their investment amount.

Questions & Answers

Q: How does WeFunder charge start-ups and investors for using their platform?

WeFunder charges start-ups a flat fee of three percent of the fundraising amount raised through their platform. There is no equity stake taken by WeFunder in the start-up. Investors can invest in start-ups through WeFunder without any additional charges.

Q: Can start-ups raise more than a million dollars through equity crowdfunding?

No, the maximum fundraising limit through equity crowdfunding is one million dollars. Start-ups can raise this amount or less, making it accessible to entrepreneurs looking for smaller funding rounds.

Q: Does WeFunder help start-ups with the SEC paperwork?

Yes, WeFunder assists start-ups by filling out the required SEC paperwork. They conduct interviews with the company founders to gather all the necessary information. Start-ups review and sign the paperwork before it is filed by WeFunder.

Q: What are the benefits of using WeFunder compared to other crowdfunding platforms?

WeFunder takes a reasonable three percent fee, provides easy-to-use templates and profile page design, and allows start-ups to fundraise simultaneously in multiple states without the need for state-by-state registrations.

Summary & Key Takeaways

• The SEC has launched a new crowdfunding feature that enables non-accredited investors to invest in start-up companies through qualified portals like WeFunder.

• WeFunder simplifies the fundraising process by helping start-ups with SEC paperwork, designing profile pages, and providing accessible templates for use by any start-up.

• Important details include the maximum fundraising limit of one million dollars through equity crowdfunding and the exemption from registering state-by-state under blue sky laws.