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

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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 115 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 115 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.

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FarmTogether

Very Good

FarmTogether is a real estate investing platform offering income-producing shares in US farmland. Investors earn money two ways: quarterly cash rent payments from farmers plus a return on the long-term appreciation of the land when it’s sold. The FarmTogether website is outstanding, and their investor education material is extensive and easy to find. Minimums are high and selection is limited, but may be worth a look for investors interested in agricultural and farmland as an asset class.

"FarmTogether is a marketplace for farmland investing. We are here to connect investors who want to invest in farmland with institutional quality US farmland investments."

EquityMultiple

Excellent

EquityMultiple stands out among real estate crowdfunding investment platforms because they’re primarily funded by a major commercial real estate investment firm (Mission Capital) rather than VCs. They offer fewer investments than some other platforms, but that’s a deliberate choice, both to ensure sufficient due diligence, and to keep the choices simple for their primary customer base, which remains small retail investors.

"Gain exclusive access to high-yield commercial real estate deals"

Fund That Flip