Software Alternatives, Accelerators & Startups

Wefunder VS StartEngine

Compare Wefunder VS StartEngine and see what are their differences

Wefunder logo Wefunder

The law changed. Invest $100+ in startups you love.

StartEngine logo StartEngine

StartEngine allows everyday people to invest and own shares in startups and early growth companies. The nation's leading equity crowdfunding platform, StartEngine is changing the way entrepreneurs raise capital.
  • Wefunder Landing page
    Landing page //
    2023-09-14
  • StartEngine Landing page
    Landing page //
    2023-04-16

Wefunder features and specs

  • Access to Capital
    Wefunder allows startups and small businesses to raise capital from a large pool of investors, including non-accredited ones, helping to meet funding needs that might not be fulfilled by traditional financing methods.
  • Large Investor Base
    With over 1 million investors, Wefunder offers extensive exposure to potential backers who are interested in various sectors, increasing the likelihood of finding the right fit for your business.
  • Flexible Funding Options
    Companies can choose between different types of funding instruments such as equity, debt, or convertible notes, providing flexibility to tailor the funding structure to their specific needs.
  • Community Building
    By involving a broad community of investors, businesses can build a loyal customer base who are also financially incentivized to support and promote the company.
  • Streamlined Process
    Wefunder simplifies the fundraising process with a user-friendly platform, providing tools and guidance for campaign creation, marketing, and regulatory compliance.
  • Regulatory Compliance
    Wefunder operates under SEC regulations, specifically Regulation Crowdfunding (Reg CF), ensuring a compliant and transparent process for both issuers and investors.

Possible disadvantages of Wefunder

  • Cost
    Wefunder charges fees for its services, including a 7.5% fee of the total funds raised, which might be a significant cost for small startups or projects on a tight budget.
  • Dilution of Ownership
    Equity crowdfunding involves relinquishing a portion of ownership in the company, which might not be ideal for founders looking to maintain control over their business.
  • Disclosure Requirements
    Companies using Wefunder must disclose a considerable amount of information to potential investors, which might include business plans, financial statements, and other sensitive data, requiring time and effort.
  • Regulatory Complexity
    Despite Wefunder’s support, the regulatory environment for equity crowdfunding can still be complex and time-consuming, requiring careful attention to compliance.
  • High Competition
    With a large number of campaigns vying for attention on the platform, businesses may find it challenging to stand out and attract the necessary funding without significant marketing efforts.
  • Investor Relations
    Managing a large number of small investors can be demanding, requiring ongoing communication, updates, and potentially dealing with differing expectations and levels of engagement.

StartEngine features and specs

  • Access to Capital
    StartEngine allows entrepreneurs to access funds from a large pool of potential investors, which can be difficult to secure through traditional funding methods or venture capital.
  • Democratized Investment
    It democratizes investment opportunities by enabling everyday investors to participate in equity crowdfunding, rather than being restricted to accredited investors.
  • Marketing and Exposure
    By listing on StartEngine, companies can gain significant exposure and marketing benefits, increasing public awareness of their brand and products.
  • Diverse Investor Base
    Companies have the opportunity to build a diverse investor base, which can enhance product loyalty and brand advocacy.
  • Regulation A+ and Regulation CF
    StartEngine provides pathways to raise capital under Regulation A+ and Regulation CF, allowing companies to choose the route that best fits their financial and compliance needs.

Possible disadvantages of StartEngine

  • Regulatory Compliance
    Companies must comply with strict regulatory requirements which can be costly and time-consuming, particularly for small businesses lacking resources.
  • Dilution of Ownership
    Equity crowdfunding through StartEngine results in the dilution of company ownership, which may not be desirable for founders who wish to retain control.
  • Platform Fees
    StartEngine charges fees for listing and successfully raising funds, which can reduce the net capital available to the business.
  • Public Disclosure
    Companies are required to publicly disclose financial and business information, potentially sharing sensitive data with competitors.
  • Investor Management
    Having a large number of small investors can complicate shareholder management and communication.

Analysis of Wefunder

Overall verdict

  • Wefunder is a reputable platform for equity crowdfunding, offering a wide array of investment opportunities in startups. It's considered good for those interested in high-risk, high-reward investments and wanting to support innovative entrepreneurial ventures. However, like all investments, especially in startups, it's important to do due diligence and understand the risks involved.

Why this product is good

  • Wefunder is popular due to its comprehensive platform that connects startups with investors. It allows small businesses to raise funds from the general public through equity crowdfunding, which means anyone can invest in early-stage companies. Wefunder provides various tools and guidance for both entrepreneurs and investors, which helps in understanding the nuances of startup investing. Additionally, Wefunder operates under the regulatory framework established by the SEC, providing a level of transparency and security.

Recommended for

  • Aspiring investors interested in startups
  • Entrepreneurs seeking non-traditional funding
  • Individuals looking to diversify their investment portfolio
  • Fans of innovative technologies and business models

Wefunder videos

WeFunder Review and Overview of Equity Crowdfunding Platform

More videos:

  • Tutorial - WeFunder Tutorial and Review for Investing
  • Review - WEFUNDER - STARTUPS IM INVESTED IN USING EQUITY CROWDFUNDING!

StartEngine videos

StartEngine Review and Overview of Equity Crowdfunding Platform

More videos:

  • Demo - StartEngine - Platform Demo and Walkthrough 2019

Category Popularity

0-100% (relative to Wefunder and StartEngine)
Investing
78 78%
22% 22
Startups
61 61%
39% 39
Fintech
79 79%
21% 21
Crowdfunding
51 51%
49% 49

User comments

Share your experience with using Wefunder and StartEngine. For example, how are they different and which one is better?
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Social recommendations and mentions

Based on our record, Wefunder should be more popular than StartEngine. It has been mentiond 20 times since March 2021. We are tracking product recommendations and mentions on various public social media platforms and blogs. They can help you identify which product is more popular and what people think of it.

Wefunder mentions (20)

  • Has "investing early" in a company changed (gotten harder?) over the last few decades?
    Check out Wefunder. https://wefunder.com/ Get in early. Source: about 2 years ago
  • Where and how are you investing your money lately?
    Have you decided to retain your investments in the stock market, or have you redirected your funds into other ventures? I'm exploring various platforms, such as republic.com, wefunder.com, and uncover.so. Source: over 2 years ago
  • ModChat - What's on your mind?
    In any case, my question is whether there is someplace on Reddit we can report this. This isn't the first time we've encountered this situation. While our subreddit is pretty new, we've been attacked in the comments section of two other websites (startengine.com and wefunder.com ), and in both cases the organization running the site was able to investigate and determine there were multiple accounts (probably... Source: over 2 years ago
  • NISA teams fan ownership
    I typically check wefunder.com every so often as teams fundraise there, the ones available right now are Temecula FC and Flower City Union as mentioned. I'm curious, how did you get shares in York City was it through the membership with the supporters trust? Big fan here in the states since 2012 and would definitely be interested in that opportunity! Source: over 2 years ago
  • Best websites/sources to be alerted about pre-IPO launches and early investor opportunities?
    I don’t know of a good pre-IPO one but this is nice for investing in startups wefunder. Source: over 2 years ago
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StartEngine mentions (7)

  • ModChat - What's on your mind?
    In any case, my question is whether there is someplace on Reddit we can report this. This isn't the first time we've encountered this situation. While our subreddit is pretty new, we've been attacked in the comments section of two other websites (startengine.com and wefunder.com ), and in both cases the organization running the site was able to investigate and determine there were multiple accounts (probably... Source: over 2 years ago
  • 🤣🤣🤣
    I'm a very disappointed startengine.com investor. KO is a paid spokesperson for Startengine. Source: over 2 years ago
  • It’s a game for these sadists.
    Everyone can do it. A self-directed Roth IRA can be purchased for about $400. It can own any kind of investment including startup shares. I'm thinking about moving the shares I purchased on startengine.com into a self-directed IRA. Source: over 3 years ago
  • It’s a game for these sadists.
    There are all kinds of startup shares for sale on startengine.com. I invested in 3 companies on startengine.com. Source: over 3 years ago
  • But wait I thought tokenomics was just a gimmick and SafeMoon had 0 utility.. FUDers going to have a real tough time with that now
    Kevin O'leary has been into some cool stuff recently. Dabbling in crypto, and he has been leading the charge on things like startengine.com where people can invest in startups, and a lot of other solid industries set to grow. Source: almost 4 years ago
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What are some alternatives?

When comparing Wefunder and StartEngine, you can also consider the following products

Republic - Where everyone can invest in startups & tokens

MicroAcquire - A free & anonymous startup acquisition marketplace

Wellfound - Where the startup world goes to find what’s next.

Equity Crowdfunding by Indiegogo - Anyone can invest in innovative startups & growing companies

EquityZen - Invest in Proven Tech Companies

AlphaStreet - Social ecosystem to simplify investment decisions.