Equity crowdfunding enables people (the crowd) to invest in early-stage private companies (companies that have not had an initial public offering). A shareholder has partial ownership of a company (depending on the amount invested) and stands to profit should the company perform. The opposite is also true, if the company underperforms investors can lose some or the entirety of their investment.
Previously only venture capitalists, accredited investors and angels could invest. Weclimate has democratised investing by enabling anyone to be an investor.
How does it work?
On Weclimate, people can invest in startups that are aligned with, that are generating real impact.
Anyone, regardless of wealth, can invest in companies on Weclimate,
How much can a Company raise?
In 2012 Crowdfunding was created when Barack Obama signed the JOBS act. The law allows companies to raise through various regulations.
Through Regulation Crowdfunding (Reg CF), companies can raise $5m each year, every year. Companies can launch in 4-6 weeks at a minimal cost.
Through Regulation A+, companies can raise $75m each year, every year. Launching costs $50,000 – $75,000. The timing to launch a Regulation A offering varies but generally, it can take 30 days to complete the necessary documentation, another 30 days to submit to the SEC and 90-120 days to get SEC approval.
Many companies start with a Regulation Crowdfunding offering before moving to a Regulation A+ raise. Between these two regulations companies can typically raise all the capital they need.
Regardless of the stage of your company you will take the following steps in raising capital with Weclimate
Weclimate reviews every company internally. If there’s a match we will move forward!
(1) Build your Narrative
Build and design your campaign page to attract investors. Don’t forget to focus on the climate impact.
(2) Set your own Terms
Unlike VC where the price and type of security is determined by the lead investor, you’re in control. You control your valuation and security type.
Under both regulations you will need to provide basic legal documents such as Articles of Incorporation and closing documents from any previous rounds.
For a Regulation+ offering, you will need a full financial audit. For Regulation Crowdfunding, you have some options:
- Save the upfront cost and self certify to raise up to $107k
- Use one of our preferred accountants and get a 2 year financial review done in order to raise between $107k to $1.07m from the start.
- To raise between $1.07 and $5m you will need to get a full financial audit done from the start