The main downside of using Wefunder is that the law requires that you disclose your financials to the public.  You can't raise money on Wefunder if you are uncomfortable doing this.  

Otherwise, most of the other potential downsides have been solved:

- One entity on your cap table.

- You choose a Lead Investor to direct the vote of all shares.

- We've funded $500+ million into thousands of companies, including Mercury, Substack, Replit, Arrived, Rappi, Gingko Bioworks, Checkr, EquipmentShare, Ironclad and over 120 Y Combinator companies.

- Accept unlimited unaccredited investors without concerns about going public due to the 12(g) threshold.

- Only one annual report is required, which takes about an hour to complete with Wefunder’s help.

- Top-notch customer support. 

If you don't file your annual report, the penalty is you can't raise again using Regulation Crowdfunding until you file it.  However, you can raise money under Reg D from Venture Capitalists without filing your annual report.