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Matchups

Wefunder vs. SeedInvest

wefunder vs. seedinvest -- old-timey boxing photo from Public domain image from the NYPL archives

This post is an experiment with a new format, a quick head-to-head matchup of similar investment platforms (in this case Wefunder vs. SeedInvest). Let us know what you think in the comments below! Most of the information below is pulled from our database of 80+ 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.

About Wefunder

Wefunder is by far the largest Reg CF platform to date, and offers a very wide selection of investment choices (with low minimums), though unlike some other investment platforms does not approve or curate companies on offer. Wefunder also has excellent investor education resources and a novel investor club model

About SeedInvest

SeedInvest accepts just 1% of the startups that apply, yet still manages to offer a very broad selection of investment offerings spanning industries and company stage, most open to any investor. Excellent documentation, a generous cancellation policy, and a low-minimum automated investment feature make SeedInvest an outstanding platform to consider for those looking at investment crowdfunding in startups.

How they match up

WefunderSeedInvest

Company's Description

Back founders solving the things you care about. Grok the risks, then join 93,004 investors who funded 155 startups with $35.5 million.Invest in highly vetted startups.

Offering Types

Reg A+, Reg CF, Reg DReg A+, Reg CF, Reg D

Founded

20112011

Pros

  • 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
  • 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

Cons

  • 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
  • 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

Our Rating

Rated 4.5 stars
Rated 5 stars

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, read our full reviews of both Wefunder and SeedInvest.

Have a question about crowdfunded investing? Want to learn more but aren’t sure where to start? You can explore more than 80 crowdfunding investment platforms in our database and learn more about the nuts and bolts of crowdfunding and alternative investing on our blog.

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