SA国际传媒

San Francisco-based has raised $5.1 million in a funding round, The startup helps individuals invest in startups , and has raised $15 million in equity funding to date, per filings. The company did not immediately respond to requests for comment.

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My first thought about WeFunder is its considerable similarity to two other startups: Angelist and Kickstarter.

According to WeFunder, AngelList is designed for 鈥減rofessionals鈥� and is the 鈥渙perating system for startups with a number of useful services.鈥� WeFunder differentiates by allowing the regular ol鈥� Joe invest, not just accredited investors. It also claims it invests in a more diverse group of startups as well as the underrepresented founders that create them. Currently, it has investments in 40 out of the 50 states.

As for how WeFunder differs from Kickstarter, look no farther than the audience the former is trying to help: startupland. Kickstarter is a tad different, as it provides creative professionals a platform to raise funds for their projects, as 鈥渇inite work with a clear goal that you鈥檇 like to bring to life. Think albums, books, or films.鈥�

Now that we get how WeFunder has legs beyond two widely-known names, let鈥檚 learn how its competitive advantage came to be.

The startup was founded in 2012 by , , and , yet its offer comes from a May 2016 law: Regulation Crowdfunding. It became legal for everyone to invest small quantities of money in private companies, an opportunity that was before only allowed for 鈥渁ccredited investors鈥� (usually of high net worth). The law lets you or me put $100 dollars into a coffee shop we really believe in, or an ostrich farm that promises returns.

, WeFunder has facilitated out $110 million in investments in startups through its platform. Those startups have gone on to get $2.2 billion in follow on investments. It claims its investment volume is larger than all of its competitors (, , and ) combined.

It鈥檚 unclear exactly what the new capital will be used for, but for some indication we turned to the company鈥檚 FAQ which reads: 鈥淥ur ambition is not to be a VC. We’re aiming to create a new type of stock market that can allocate more capital to all sorts of worthy businesses, be it a local community-supported coffee shop or the next Uber.鈥�

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