Why should I consider crowdfunding to raise capital?
A crowd of investors can validate your product in a way that institutional investors cannot. They understand your product from a customer standpoint and can give you feedback from the platform. With crowdfunding, if they're already customers, now you're enabling them to become owners, and with that you'll have brand ambassadors.
What kind of companies should use Wunderfund.co?
We will consider a broad range of consumer & B2B ideas that have mass appeal. We will accept everything from boutiques, breweries, restaurants, consumer goods, software as a service, the internet of things, gaming, clean tech, and more.
How do I get started?
Hit that green button in the right corner and sign up to become involved in the community. Once you start to build out your profile, we make it easy for you to fill out form c to get your campaign off the ground.
Does it cost money to create a basic profile?
It's free to sign up, build a profile, and start a campaign. If your campaign is successful, we take 5-7% of the funds based on how much your company raises.
Can I create a profile and not raise funds or commit to investing?
Absolutely. We suggest creating a basic profile to understand how the process works on both sides and to start collecting followers before starting to fundraise.
Are there legal issues I need to be aware of when creating a campaign?
When you build a crowdfunding campaign, the biggest watchout is making any false promises. As a new company, you can't predict the future, so promising explicit revenue targets and specific growth numbers can be misleading. You are liable for every statement that is not true. Since you're dealing with investors now, you also cannot withhold relevant information that could affect their decision to invest (e.g. a pending lawsuit). Read our Legal Fast Start Guide for more information.
Are there eligibility requirements for my company to create a campaign?
Before you can issue an offering on Wunderfund.co, you have to apply and tell us about your team and your company. We look for a complete business plan, pitch deck, financial information, and other relevant historical information that we review for preliminary due diligence. Only companies that get through this preliminary due diligence criteria will be permitted to raise funding. Passing this process is not meant to be construed as investment advice or endorsement by Wunderfund.co.
How much equity can be raised for a single campaign?
***COVID-19 UPDATE: If you launch a campaign on our platform before August 31, 2020, you're eligible to raise up to $250K without needing a CPA Review, and the maximum limit has been raised to $5M.*** The maximum amount you can normally invest on our platform is $1.07M. Although we have no set minimum, we encourage companies to raise no less than $10,000 on this portal.
Are the company's confidential documents secure? Can anyone see those?
Only approved investors logged into the portal will be able to see confidential documents that you upload for your campaign. Basic information about your company will be shared to any anonymous users in order for the investor community to make informed investment decisions. As long as appropriate disclosure is made and those disclosures are true and accurate, each company chooses the exact information that is shared.
Do you provide investor accredidation for angel investors?
At this time, we do not provide this service. In the future, we plan to do so.
Do you conduct background, criminal, and credit checks?
Yes, per government guidelines, we will run a background check and credit check.
How is my company's valuation determined?
You will set the valuation of your company as the issuer of the campaign. We offer due diligence if needed to determind your company's valuation for an extra cost.
How do I know if I'm ready to start fundraising on Wunderfund?
We fund companies at all stages but we recommend that if you fundraise on Wunderfund.co, you have some proof points that can convince investors you can 'get stuff done' and not just in the idea stage. While there are no requirements, we recommend at least one experienced investor that publicly endorses your company. It also helps to have at least a working prototype, and ideally, a few paying customers. But before then, create a free profile, and start collecting followers!
Can I edit my campaign even after it is launched?
Yes, your campaign is editable after it is launched. Note that any change made after it is launched and you have backer, they will have to be notified of any changes and then have to re-commit their investor.
How many investors can participate in a round?
This depends on the minimum investment size, which you can set when you build your campaign. For example, if you set a minimum investment size of $1,000 on a target goal of $100,000, it's possible 100 investors could participate in the round. It's common for investors to make larger investment sizes than the minium, which would affect the maximum number.
Will all the investors have voting rights?
Minor investors who invest less than $25,000 do not have voting rights. As for anyone who invests more than $25,000 into a specific company, they do have voting rights in the company.
What rights will investors who invest through Wunderfund have?
Your company will set the investors rights where this is structured in the terms of the type of offering and investor agreement. We have a standard template you can use, which you can choose to review with your own legal counsel.
At what points am I allowed to promote my campaign?
You can begin promoting your campaign only after it is enabled on Wunderfund.co. Before then, you can publicly share your personal profile, and ask others to 'follow you'. However you cannot legally say that you are in fundraising mode or share any details about your planned offering until it's officialled launched. Per legal guidelines, you are not allowed to say, 'we plan to begin fundraising on July 4th a total raise of $500K.' You must also avoid saying things like, 'Once we file with the SEC...' They frown upon that.
What legal considerations should I be concerned about when advertising?
You can promote after the form C is filed with the SEC. Importantly, filing a Form C is not an 'approval' or 'endorsement' from the SEC. So definitely avoid advertising with any statements referring to the SEC. At this point, you can advertise in any channel you want, whether it's email, social media, youtube, or on a flyer you pass out on the streets. What's important is that your advertisements must be based on objective facts about your company. You certainly cannot say 'Invest in the the Best darn company on the planet'). All your adverstising must include a link to your Wunderfund.co profile. More info about this is within our Legal Guide.
How do I close my campaign?
Once the deadline hits, the campaign will automatically close and not accept anymore investors. If the funding goal was reached, investors will be notified and it will take about 5 days for the funds to go through.
What happens if my campaign doesn't reach its funding goal?
None of the money invested goes through and it goes right back to the investor. You are allowed to start a new campaign a month after the closing date of the failed one. Use this 30-day buffer to gain more followers, improve your numbers, and do anything that might boost your investments for the new campaign.
How do I engage with all of my investors once the campaign is closed?
It's up to you to keep your investors updated with regular communications about your company's progress. At a minimum, we encourage quarterly financial updates via email or newsletter be sent to your investors. This way, they can provide input, advice, or connections that might be helpful for you.
Is it possible to extend my deadline if the fundraising goal has not been met?
Yes. However, this is a material change that requires all of your investors to reconfirm their investment, so note that you might lose some investors. Sill, it's a better option than failing.
Will investors contact me directly?
You can choose to have your email address available on your campaign page, or you may opt out and then all communications with investors are handled within the portal.
How often should I provide updates after the campaign is closed?
You are required by the SEC to file an update report at least once a year at the minimum, but we encourage you to provide quarterly financial updates via email or newsletter to your investors.