Social-media startups target a new set of investors: their users
Briefly

Social startups Diem and Spill are inviting users to invest in their platforms through WeFunder, allowing everyday individuals to become part of the companies they engage with. Diem, a social search platform, and Spill, a visual conversation app, aim to provide user ownership in their products. By lowering investment thresholds to $100 and $250, respectively, they open avenues for broader participation. WeFunder’s platform facilitates this model by enabling smaller investments and providing a structured method for community funding, allowing startups to engage with their user-base more meaningfully.
"We've always wanted the community to be able to own a piece of the product," Diem CEO Emma Bates told Business Insider.
"What we have is a tool that allows you to let a larger number of smaller checks into the deal," said Read Ezell, director of fundraising at WeFunder.
"It's not a signal that you can't raise money, it's a signal that you have another way to raise money," Ezell said.
Community investors on WeFunder are represented by a single lead investor and receive a single line on a startup's cap table.
Read at Business Insider
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