It is illegal to invest $100 in a startup in exchange for equity or options unless you’re an accredited investor.
Still, a website for crowd investing launched today: WeFunder.com. Even though the law that would make it legal is still being debated in the Senate, TechStars alumni and Startup Workaway co-founders Nicholas Tommarello and Nick Plante went ahead and built WeFunder and wrote a business plan anyway.
“We’ve built out the crowd-investing platform in advance of the law passing, and have put in a lot of thought into how to best protect small investors,” Mr. Tommarello wrote in an email.
A disclaimer on the site reads:
Wefunder is a crowd-investing platform for startups. Until the current law is changed (hopefully soon!), our invite-only beta is only open to accredited investors. Read More