Investor FAQ

Getting Started

Founder FAQ

Getting Started

Getting Started

What is Fund MSME?

We help everyone invest as little as $100 in the startups they love. You can think of us like “Kickstarter for investing”. Unlike Kickstarter, you are not buying a product or donating to an artist. Instead, you are investing in a business with the hope of earning a return. You decide which companies are worthy of funding. If the business does well, you may make money. If it doesn’t do well, you lose all your money. Either way, you join a community of other investors who seek to help the startup succeed. You sometimes get neat perks from the companies too.

Any tips for a first-time investor on Fund MSME? Our advice? Start off slow.

1. Expect to lose it all. Never invest more than you can afford to lose. 2. Only invest in what you understand. Preferably, a product or mission that you love. 3. Do your research. You also can ask the founders a question on their company profile. 4. Diversify. It’s better to make multiple small investments rather than one large one. Plus, it’ll help you learn more. 5. Look at the Lead Investor. Has a more experienced investor invested in the company, under the same terms as you? Why are they investing?

Any tips for a first-time investor on Fund MSME? Our advice? Start off slow.

As we like to say, nearly the entire American economy! That’s the fun part!
We’ve funded tens of millions of dollars in startups like: Moonshots like flying cars, space telescopes, and fusion reactors Neighborhood businesses like café’s, restaurants, and breweries Software like mobile apps and online education Biotechnology like glowing plants and researching cancer cures Entertainment like Hollywood studios and immersive theater And much, more! The one commonality? All of the companies that raise successfully on Wefunder have a loyal community of people who believe in them.
Just how risky are startups?

Very! You should only invest what you can afford to lose. Do not invest so much that it would impact your lifestyle or retirement plans. Every investment listed on FundMSME is much riskier than a public company listed on the stock market. It is entirely possible that you will lose every dollar you invest on FundMSME.

How can I decrease the risk?

You are more likely to avoid loss by diversifying your investments, focusing on areas in which you have expertise, and investing in startups whose products you passionately use. Even professional investors have a difficult time predicting exactly how startups will earn money in the future (e.g., Google in 1999). Investing in what you know and find personally valuable is an important signal of a good investment.

How many investments should I make?

We recommend making several small investments each year rather than one large one. For instance, if you decide you can safely invest $5,000 per year in startups, it’ll be less risky to make ten $500 investments instead of a single $5,000 one. You should never invest more than you can afford to lose.

Can I easily resell my investment?

It’s safest to assume you cannot resell your investment to another investor. First, there is not yet a liquid secondary market like the New York Stock Exchange for private companies (yet). Regulation Crowdfunding also specifically prohibits the resale of securities for one year, except to the issuer, an accredited investor, a family member, or their trust.

Lead Investors
What is a Lead Investor?
The Lead Investor is an investor who is familiar with the startup and decided to invest on the same terms as those offered on FundMSME.

More importantly, the Lead Investor directs the voting power of all FundMSME investors. The Lead Investor fights for you and is incentivized to maximize the value of the company.

When deciding whether to invest in a company, you should look at who the Lead Investor is, see how much they invested and why, and make your own decision on if you trust their judgement. FundMSME does not endorse the views or activities of any Lead Investor and our approval of a Lead Investor does not constitute an investment recommendation.