An interview with a Wefunder investor

413,355 people have now invested in a startup on Wefunder. One of them is Yaacov Sakowitz.

I asked Yaacov if he would share some thoughts on investing on Wefunder. His answers to my questions are below.

Jonny: Why did you start investing on Wefunder?

Yaacov: I started investing on Wefunder simply because it gave everyday people access to opportunities that were traditionally reserved for venture capital firms and ultra-wealthy investors. I’ve always loved entrepreneurship, disruptive ideas, and asymmetric upside opportunities. Wefunder helps make it possible to back founders and companies I genuinely believe in, while learning directly from the startup ecosystem in real time.

I also love the emotional side of it. You’re not just buying a stock ticker, but you’re supporting someone’s dream, vision, and years and sometimes several years of hard work. That feels meaningful. if they ultimately succeed... It’s a Win, Win, Win all around.

Jonny: How do you decide who/what to invest in?

Yaacov: That’s the Billion dollar question! I’m not going to answer this question in a straightforward way, sorry, there are just way too many variables involved.

What I will say is that a big part of it is the team, as well as simply my intuition (of course after evaluating many factors). I personally look at 10+ different factors. I’ve created my own way of grading companies and making decisions based on that framework. I wish I could be more clear but this answer alone could easily turn into a 20+ minute discussion.

I’ll also say that conviction matters a lot, so not just the team itself, but the team’s conviction, which is different from simply having a team with an impressive background. Bottom line, If I’m excited enough to tell my friends about the company after reading the pitch, that’s usually a pretty good sign.

Jonny: What’s your favorite investment so far?

Yaacov: I don’t want to mention any specific companies, but I will say this: I’ve looked at hundreds of opportunities, and the few that really stand out in my mind combine an incredibly strong vision (with a huge pain point), strong execution, and obviously massive upside potential.

I especially enjoy companies building products that feel inevitable — the kind where you can imagine yourself saying 10 years from now, “Of course this became huge” - It just seemed like an obvious choice... On the other hand, of course there are many companies that have massive exits and weren’t obvious at all...or maybe even sounded ridiculous with a super low chance of ever succeeding.

Ultimately, if you’re serious about investing, I think everyone should develop their own investment thesis and try to stay within that as much as possible, within reason, even if isn’t with a large amount of money. Although I guess if it works for someone, their thesis can technically be “I have no thesis” — other than having a goal of putting X amount of money in X amount of companies over X amount of time, in order to get involved in this space, while helping companies grow in a small way...

In general though, the most exciting investment opportunities are the ones where the founders aren’t just building a company, but rather they’re building a movement while solving a massive problem.

Jonny: What do you like about investing in startups via Wefunder?

Yaacov: The accessibility and community aspect are huge. Wefunder makes startup investing feel collaborative instead of intimidating.

I like the ability to:

• Discover innovative startups early

• Invest small amounts across many companies

• Follow founder updates and progress over time

• Learn things while investing

• Feel connected to the startup ecosystem without needing millions of dollars

It also creates a powerful alignment between founders and customers. Some of the best companies are built by communities, not just cap tables.

Jonny: Anything you would like to see more of from Wefunder in the future?

Yaacov: Simply put, I’d like to see more tools, education, and data designed specifically for new startup companies, as well as more education and tools on the investor side.

Jonny: Which type of companies would you like to see launch a community round, so you can invest?

Yaacov: For a broad answer, I’d love to see more iconic, fast-growing private companies embrace community rounds earlier on. Companies with passionate users and strong brand loyalty are perfect fits for crowdfunding because their customers often become their best marketers and biggest fans.

If I had to pick one specific type of company, it would probably be an AI-first company that everyday businesses can actually use and benefit from. Something with the potential to become part of the daily workflow for millions of people. Obviously, that would also need to include a strong team that knows how to execute and, ideally, strong IP as well.

The future belongs to companies that combine strong technology with strong communities.

Therefore, community investing feels like a natural evolution of entrepreneurship in general.

A big thank you to Yaacov for sharing his insights on how and why he invests in startups on Wefunder!