Wefunder is a crowdfunding platform that allows investors to invest as little as $100 in startups and small businesses. The platform was launched in 2012 and has since helped entrepreneurs raise over $100 million in capital. Wefunder is a great way for investors to get in on the ground floor of a startup and potentially reap significant returns. But is it the right platform for you? In this Wefunder review, we’ll take a closer look at the features, fees, pros and cons of the platform to help you decide if it’s the right fit for your investment needs.
Features:
Wefunder offers a wide range of features for both entrepreneurs and investors. For entrepreneurs, the platform provides tools to create a fundraising campaign, reach out to potential investors, and track the progress of their campaign. The platform also offers a variety of ways for entrepreneurs to communicate with investors, such as webinars and Q&A sessions.
For investors, Wefunder provides a curated selection of startups and small businesses that are seeking funding. The platform also offers a variety of investment options, such as equity, debt, and revenue sharing. Additionally, investors can track their investments and receive updates on the progress of the startups they’ve invested in.
Fees:
Wefunder charges a 7.5% fee on the funds raised by entrepreneurs. This fee includes the cost of creating and hosting the fundraising campaign, as well as the cost of providing support to entrepreneurs and investors. Additionally, Wefunder charges a 2% fee on all investments made by investors.
Pros:
- Wide range of investment options: Wefunder offers a variety of investment options, such as equity, debt, and revenue sharing. This allows investors to choose the type of investment that best suits their needs.
- Curated selection of startups: Wefunder provides a curated selection of startups and small businesses that are seeking funding. This helps investors find high-quality investment opportunities.
- Low investment minimum: Wefunder allows investors to invest as little as $100 in a startup. This makes it accessible to a wide range of investors.
Cons:
- High fees: Wefunder charges a 7.5% fee on the funds raised by entrepreneurs and a 2% fee on all investments made by investors. This can eat into the returns of both entrepreneurs and investors.
- Limited information: While Wefunder provides some information about the startups seeking funding, it may not be enough for some investors to make an informed decision.
- Risky investment: Investing in startups is inherently risky. While there is the potential for significant returns, there is also the possibility of losing your entire investment.
In conclusion, Wefunder is a great platform for entrepreneurs looking to raise capital and for investors looking to invest in startups. It offers a wide range of investment options and a curated selection of startups. However, it’s important to keep in mind that the platform’s fees can be quite high and that investing in startups is inherently risky. As with any investment, it’s important to do your own research and assess your own risk tolerance before investing on Wefunder.
