";s:4:"text";s:4785:"Investment limits are for every 12 month period. If you invest in a startup with a valuation cap of $8 million, and they later raise at a $20 million Pre-Money Valuation, the amount of stock you'll get will be priced off the $8 million number. Is this press-worthy? The Lead Investor is meant to advocate for investors. So we'll try to help figure out what are good terms if that's the case.The right terms is very specific to your company, but here's some general advice for two kinds of companies that are more unlikely to have prior investors:The biggest difference is the risk & reward. Most credible demo days – such as those organized by Techstars or Y Combinator – already do not let their participants mention they are selling securities (or the terms of their offering) so as to not be deemed a "general solicitation" of securities that is forbidden for most Regulation D offerings.That same rule applies for conferences. It's safest to assume you cannot resell your investment to another investor. The XX Team is financially incentivized to help companies in the Wefunder portfolio succeed. Typically, a Lead Investor receives 50% of the profits received by XX.The XX fee is not paid to Wefunder (or any of its affiliates), but to XX. It's a beast of a document, but definitely useful to dig through. Your law firm should provide these documents. Each has their own strengths. While we don’t vet ideas, we do a fair amount to make sure there is no hint of fraud, including doing background checks on all of the founders, and verifying that all of the documents they’ve provided comply with the law. You can ask people to "follow" your profile to show their support, but are not allowed to say things like: "We are going to fundraise on May 16th" or "as soon as we file with the SEC, we'll be raising at a $4 million valuation. Not all of these updates need to be long or serious – even just posting a few photos or paragraphs detailing the new cool thing your company is doing will show investors that you're using their money to help move your company along.
Write an authentic personal email to them. Instead, you are You decide which companies are worthy of funding. Only eligible accredited investors may invest in it, including eligible accredited investors who invested in your prior Regulation CF’s offerings. We're excited to help you raise money. Wefunder is in the process of requiring that each company identifies the Lead who helped set the valuation.One of the best early-stage investing firms - measured by objective returns - is First developed by Y Combinator in 2013, a SAFE grants an investor the right to obtain equity at a future date if the startup sells shares in a future financing. If the fundraise succeeds, your money will be released to the startup. XX Investments LLC is a SEC-registered transfer agent that also acts as a custodian on behalf of your investors for all securities sold on Wefunder, so your company has only one entity on the cap table.A Custodian is an entity (such as a broker-dealer, bank, or transfer agent) that holds any securities you sell on behalf of your investors (who are the "beneficial owners" of the securities). The custodian also votes these securities and signs any documents on their behalf, following the direction of your Lead Investor.The custodian (XX Investments LLC) is the one entity on your cap table, because it is the legal owner of all the securities. Companies that fit one of these categories often raise money successfully:We accept nearly any type of company, be it a brick-and-mortar restaurant or a high-tech software startup.