startupsThat is correct! September 23rd the law went into effect that allows startups to advertise their businesses to accredited investors. What does this mean for the startup community? Well it means that you can be seen by angel investors if you have the dough to be front page. Most startups don’t have a lot of money to begin with, so it should be interesting to see if this will be a great help.

There are some great websites out there that help you connect with these such investors. I ended up taking a good look at Crowd Funding Website Wefunder. First off I really enjoyed the color scheme and layout. It is a very clean design with soft blues and greens. There is a big call to action button to signup right at the top, which made it easy for me to signup. The home page displays some startups that have been raising money. Many of them look like they have done a very successful job at raising a good amount of investment.

After your account is all setup, you have the option to continue to fill out your profile. If you plan to invest in some companies you are required to give banking information and tax id. I did not go as far as this, so I am did not get to see the whole funding process. Many of the companies on WeFunder require a minimum of $1000 investment. They have a detailed area that talks about the legal and recommended way to handle the online investment process. I guess that is not the best practice to except investment from many different investors. So they created a consolidation of all the investments in one package that you can get from WeFunder.

One sneaky thing that they do that I did not like is they don’t discuss the fact that you have to front some money to begin the process. They have you create a profile and go through the long process of setting up your startup and then tell you after you are done. Their pricing seems a little steep if you go the consolidating route. If you go the other route, I believe it is $99 plus $26 each investor. Not too bad if someone puts a big chunk of money into your business right?

You can create a profile and setup your startup without accepting investment, but good luck making it to the first page. The website is probably very selective about who they choose the top startups. If you go to their faq page then on the left side go to curration, they have a list of things you can do to help your chances.

Another good website out there if you are looking for investors is Angel.co. It has a very similar concept, but has more of a social interaction. Investors can ask you questions and create updates. You can create a cool company profile that investors can come and look over. One cool thing about Angel List is that they have a large database of startups. You can look through all the great ideas people have and how they are getting funding.