In the early days of equity crowdfunding, platform Wefunder has launched 20 regulation crowdfunding campaigns under Title III of the JOBS Act. Companies can raise up to $1 million every 12 months.
Wefunder is registered as a funding portal with both the SEC and FINRA.
“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” Wefunder founder and CEO Nicholas Tommarello said. “Now, finally, we all have the right to invest in what we care about.”
Wefunder founder Mike Norman explained how his company has gained traction with entrepreneurs.
“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.
“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. ”
Urban Junction president Bernard Loyd said Wefunder and other platforms fill a large void in small business finance.
“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.”