How much can I raise? #
Is a Community Round public or private? #
Who can invest? #
Which companies can open a Community Round? #
How does it compare to an RUV? #
What are the financial requirements? #
How do SPVs work? #
Who manages the SPV? #
For most new SPVs, the manager is Wefunder Admin, LLC, who then delegates voting decisions to the Lead Investor.
For legacy Reg D SPVs and those set up for certain purposes such as investing in follow-on financings, the manager is Wefunder Advisors, LLC.
The manager of an SPV is disclosed in the Subscription Agreement that investors sign when they invest through an SPV.
Do all these investors vote? #
What does the Lead Investor do? #
The Lead Investor directs the voting power of all Wefunder investors. That’s it—they have no additional responsibilities to the company or other Wefunder investors.
The only requirement is that the Lead Investor is not an officer, employee, or family member, and does not have any other conflict of interest.
This Lead represents everyone in the SPV in case there’s a need for investor signatures.
They do not have to be the biggest investor in the round.
Who chooses the lead investor? #
How should I choose a lead investor? #
If you have multiple options for a Lead Investor, that's great! Here's how we recommend choosing:
- 1. Mission-aligned and excited. You want someone who groks your long-term vision.
- 2. Can bring their expertise and/or community to your round. Maybe they’re an industry expert, or they have a large community that would be interested in investing alongside them.git
- 3. Do you like them personally? Life is better if you follow the "no asshole" rule.
- 4. Why would someone invest in your company? You want a Lead Investor who can explain this passionately. Their testimonial will appear on your Wefunder campaign page.
How do I start a Community Round? #
Start your campaign on Wefunder.