Matchups

Wefunder vs. SeedInvest

Comparing two of the biggest investment crowdfunding platforms offering startup investments to both accredited and non-accredited investors.

photo from nypl archives of an old-timey boxing match

This post is an experiment with a new format, a quick head-to-head matchup of similar investment platforms (in this case Wefunder. Most of the information below is pulled from our database of 101 online alternative investment platforms.

The Contenders

Today’s matchup is Wefunder vs. SeedInvest, two of the biggest investment crowdfunding platforms offering startup investments to both accredited and non-accredited investors. We’ve mentioned both of these platforms before, in 5 of the Best Equity Crowdfunding Sites for Beginning Investors.

SeedInvest MicroVentures
Company's Description Invest in highly vetted startups. Get access to highly curated early and late stage investment opportunities
Founded 2011 2009
Offering Types Reg A+, Reg CF, and Reg D Reg CF and Reg D
Pros
  • Wide selection of available investments, many open to non-accredited investors
  • Low minimum investments
  • Detailed, yet readable investment overviews
  • Automated investing into 10-25 curated startups
  • Offer Reg D, Reg CF, and Reg A+
  • Generous cancellation policy
  • Affiliated with a registered broker-dealer
  • Strong track record (founded in 2009)
  • Emphasis on due diligence and curation of investments
  • Wide selection (especially for accredited investors)
  • Registered broker-dealer and Title III Funding Portal (via First Democracy VC)
Cons
  • Startup investments are inherently risky and illiquid
  • Sheer volume of offering types can be confusing
  • Complex overall entity structure of various affiliates and partners
  • Amount and type of due diligence can vary considerably by investment type
  • Number of open Reg CF opportunities can be low (only 3 at time of this writing)
  • Startup investments are inherently risky and highly illiquid
  • Sheer breadth of choices can be overwhelming (lots of types of offerings, partnerships, funds, etc.)
Our Rating

The Results

Both Wefunder and SeedInvest are solid choices for crowdfunding investors looking for early-stage startup investments. The biggest distinction comes down to curation philosophy. Wefunder works hard to bring a put a lot of deals in front of investors, believing the market (ie, investors) are best positioned to evaluate offerings and ultimately determine which companies succeed or fail at their raise. SeedInvest takes a much more curatorial approach, winnowing down applicants and ultimately presenting only what they believe are the best and brightest opportunities. Neither approach is inherently better or worse, though it’s important for prospective investors in either platform to be aware of the difference.

For more information check out our full reviews of both SeedInvest and MicroVentures.