Wefunder vs. SeedInvest

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

Published 27 July 2017 by Andrew Savikas

We may receive compensation from affiliate links on this site

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 112 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	Wefunder
Company's Description	Invest in highly vetted startups.	Back founders solving the things you care about. Grok the risks, then join 93,004 investors who funded 155 startups with $35.5 million.
Founded	2011	2011
Offering Types	Reg A+, Reg CF, and Reg D	Reg A+, 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	One of the largest Reg CF investment platform Wide selection of available investments, many open to non-accredited investors Low investment minimums Friendly cancellation policy (48 hours for all investments) Offers Reg D, Reg CF, and Reg A+ investments
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	Startup investments are inherently risky and illiquid No curation or due diligence of offerings (beyond minimum background checks and anti-fraud) High carried interest on Reg D investments (up to 20%) Complex overall entity structure of various affiliates and partners
Our Rating	Spectacular	Outstanding

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 Wefunder.

Want to learn more but aren’t sure where to start? You can explore 112 crowdfunding investment platforms in our database and learn more about the nuts and bolts of crowdfunding and alternative investing on our blog. Did you know you can use a self-directed retirement account to invest in many alternative investments? Rocket Dollar makes it easy, and when you sign up using that link you'll be helping to support YieldTalk.

Share this post:

Constitution Lending

Very Good

Constitution Lending is a recent entrant in the real estate investment crowdfunding ecosystem, parlaying prior experience as a fund investing in real estate debt into an online investment portal. Constitution Lending operates as a “hard-money lender”, offering developers short-term loans for various types of real estate projects, then selling the loans fractionally to investors. Notably, they offer a “payment guarantee” program covering the first 6 months of expected interest payments to investors.

"Earn 8% - 12% Investing in High Yield Loans Backed by Real Estate"

Fund That Flip

Excellent

Fund That Flip operates as something akin to a hard-money lender, offering developers short-term loans for residential rehab (fix-and-flip) projects, then selling the loans fractionally to investors. They stand out for offering detailed info on prior loans, and their “Residential Bridge Note Fund” is worth a close look for easy diversification across multiple loans.

"Earn 10+% annual yield by investing in qualified real estate loans."

Eastview Capital