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Comment by npt4279 | Hacker News Reader

I'm a founder at Wefunder, and I'm happy to answer any questions about Regulation Crowdfunding.

We recently closed $1m each for three different companies. Here are our stats: https://wefunder.com/stats

From a Wefunder post[1] about RC: "However, with these protections, in the very worst case scenario, a venture capitalist firm ideologically opposed to a “messy cap table” (even though there are no voting rights) can simply repurchase the crowdfunded securities during the deal."

What does that last bit mean, regarding "repurchase the crowdfunded securities"? Do smaller investors run the risk of losing their shares entirely during a later-stage deal with a VC that wants to clean up the cap table?

[1] https://blog.wefunder.com/founders-the-strengths-and-dangers...

Smaller investors run the risk of being repurchased for fair market value at the time of the re-purchase.

The Fix Congress Act being debated in Congress may solve this problem.

What relationship did the companies have with the investors

Typically, the investors are the startups own customers. For our most successful $1m raises, we estimate over 70% of the funds are their own community.

This makes sense. One good signal of whether you should invest is whether you love the product.

My biggest concern would be ending up with a crazy cap table. When a crowd SAFE converts does the entity stay consolidated?

We created a special SAFE that won't convert until IPO or acquisition.

Ahh... so it stays a single entity until the company is large enough that having a ton of shareholders doesn't matter.

That's clever.

thanks for the project. Ideally, how much time Wefunder review process will take?

Generally, within a couple of days.

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