[akiselev]

"they have time to sort that out"

Not really... There is a big difference between managing the process for one company and doing it for many. The latter will quickly cause costs to spiral out of control unless the team can get some experience with the regulations now.

In the world of dealing with regulations, one year may sound like a lot of time for one startup but if you have to handle the paperwork for dozens, it's a whole different ball game.

[niggler]

It takes a team of 2 people 6 months and 25K to set up a broker-dealer, do relevant background checks, pass relevant exams, pass audits, get personnel exemptions, SRO agreements, etc. (https://www.sec.gov/divisions/marketreg/bdguide.htm). That's a one-time process and WeFunder may have done it already.

Once that's done, setting up separate legal investment funds is a 1 month initial process (and its fairly simple to scale this up -- the individual investment funds would be set up in parallel). There's some quarterly paperwork and some yearly paperwork, but it's entirely within the abilities of one person to handle "dozens"