Y Combinator has been funding new and promising startups twice every year and over 500 startups have been funded so far including Loopt, Reddit, Wufoo, Scribd, Xobni, Songkick, Disqus, Dropbox, Airbnb, Bump, Hipmunk, Codecademy, SocialCam and 42Floors. The new batch of startups for 2013 have already demonstrated their ideas and new businesses to investors, journalists and startup enthusiasts. Wefunder, one of the promising startups from Tuesday’s demo day now offers you the opportunity to invest in great startups with as little as $1000.
The company gives everyone – regardless of wealth – the opportunity to invest in startups of their choice. Wefunder features the best new companies that are tackling important problems, and lets you help them with your time, advice, and investment.
The big question on your mind now is when you can start investing in a startup of your choice. Thanks to the JOBS Act, starting in mid-2013, everyone will even if you are not an American citizen. That’s the good for everyone out there who wants to infuse some cash into one of the best startups listed on Wefunder.
When can I start investing?
The JOBS Act was signed into law on April 5th, but the SEC needs to publish final regulations before investing can be offered to every American. The SEC already missed the January 2013 deadline imposed by Congress. We expect the SEC to publish regulations in summer 2013. Until then, only accredited investors may invest on Wefunder.
How much am I allowed to invest?
Accredited investors have no limits. If you are not accredited, the amount you may invest each year is capped by law at 5 to 10% of your income. To find out your annual investment limits, certify yourself as an investor.
How does the investment process work?
When an investors applies to invest on your profile, they digitally sign the investment documents and enter their bank account information. You can then choose to accept or deny the investment. Once accepted, the investment is sent to a trust account managed by your law firm. The money will be transferred to your corporate account after your fundraising campaign is 100% funded. Campaigns must run for at least 21 days during which investors have the opportunity to revoke their contract and receive a refund.
To answer all your numerous questions before you give away your $1000 or more to the next startups you can read about all the frequently asked questions potential investors have at the Wefunder faq page.Follow @Alltopstartups