WeFunder

Start-ups

Seen as the Kickstarter for investing, WeFunder is an investment platform that allows you to invest in startups that you believe to be profitable.

Invest
How you make money
Value
Minimum Investment
100
Fees
2%
Target Return
Varied
Open to
All Investors
Liquidity
Hard

How you make money

You decide which startups or worthy of your investment, and if it succeeds you could be looking at a return as a creditor or equity investor. With debt, the faster the business grows, the faster you earn a return and the higher your effective interest rate will be. For equity investments, when the company is successful and decides to do a "priced round", they will buy back equity at a fixed price per share - which will likely be higher than your initial investment.

How they make money

WeFunder charges investors up to 2% of their investment with their minimum being $7 and their maximum being $75. WeFunder also charges the company to a 7% fee based on their funding total if the campaign is successful.

Investment Risks

These securities are not publicly traded, meaning that they are not fully liquid and available to sell. There is no secondary market for these investment products, so once you invest, you must keep your money in until the company provides you with a way to be compensated for your investment. Investing in startups is highly risky, and investors should be willing to lose all funds they invest.