Investors always look for the next big thing to invest their money in, so we’re doing a Wefunder review. Whether it is a new stock or a hot new cryptocurrency, being early is one of the best ways to earn exponential gains in the future. But have you ever thought about investing in start-ups before anyone has heard of them?
Angel investing or private equity investing has always been associated with the billionaires in Silicon Valley. Thanks to sites like WeFunder, private equity investing is available to the masses. This Wefunder review will discuss what this company does, who it is invested in, and why you might want to consider being an angel investor to diversify your investment portfolio.
Our Wefunder review found that they’re a site that combines private equity investing with crowdfunding. The company was founded in 2011 by Nick Tommarello, Mike Norman, and Greg Belote. It is headquartered in San Francisco, California, and was backed by Y Combinator, one of the biggest names in the tech startup industry.
The company was established on the premise that anyone should be able to invest in a private startup. Founder and CEO Nick Tommarello wanted a way to invest in his friends’ ideas and help fund the companies of their dreams. WeFunder has opened the doors to everyday people, allowing them to invest in the most promising startups with as little as $100.
As of 2024, Wefunder has raised over $655 million through more than 580,000 investments. The median investment amount is $250, and more than 3,060 founders have had their startups funded.
Who Has Wefunder Invested In?
Per this WeFunder review, they’ve invested in over 3,000 companies, including some of the biggest tech companies. Users of the site can invest their money alongside some of the most prominent angel investors, including Andreessen Horowitz’s A16z and the aforementioned Y Combinator.
If you read or subscribe to blogs, you are likely familiar with the Substack site. According to its latest round of funding, over 6,600 investors on Wefunder invested $7.8 million in Substack, a company worth more than $650 million. Substack has more than 3 million paid subscribers and more than 20 million monthly active visitors to its site.
Another company that WeFunder invested in is the software company Replit. AI powers this company and allows developers to build and deploy software platforms. As of 2023, Replit was valued at over $1 billion, making it a legitimate tech unicorn.
Mercury.com is an online banking platform for startup companies. This company builds software platforms that run all financial operations for their customers and was named one of Forbes’ top 50 Fintech companies. Mercury made mainstream headlines after it received billions of dollars in deposits and a massive influx of customers after the fall of Silicon Valley Bank in 2023.
Investing with Wefunder
There is a lot to be impressed with for investors considering adding Wefunder to their portfolio. The site is truly for everyone, regardless of income or net worth. There is no minimum balance or cost to sign up for an account on Wefunder, and no account minimum is needed to maintain your Wefunder profile.
Wefunder is open to residents of every country except those with certain economic sanctions. These include countries like Cuba, North Korea, Iran, Russia, and Syria. Once you create a free account with Wefunder, you must deposit funds to start making your investments. Wefunder accepts bank transfers, checks, credit cards, international wire transfers, and digital wallet payments like Apple Pay and Google Pay.
The minimum investment is $100 unless otherwise specified by the startup. While investing in startups isn’t a huge hurdle, it is a larger initial investment than other crowdsourcing sites like Kickstarter, GoFundMe, and Indiegogo. We will note that Wefunder has a slightly different demographic than these other sites. Wefunder users are investors looking to earn off of their initial investment. These other sites can be seen more as donations than investments.
Wefunder Review of Fees
How does Wefunder make money? They take a cut of every investment and a percentage of your total profits. This is all explained on the Wefunder website, so you should read all the fine print before investing.
For investors, WeFunder charges a percentage of their investment. If you make that investment by bank transfer, wires, or checks, then the fee is 2.0% of your investment. If you use a credit card, Apple Pay, or Google Pay, Wefunder charges 5.5% of your investment with a minimum fee of $8.00.
The caveat many investors are unaware of is the 10% cut that Wefunder takes from your profits. Here is the wording from Wefunder’s website:
“In exchange for our ongoing management and administration of investments, Wefunder receives 10% of any profits ultimately earned by investors over and above the original investment amount.”
For companies looking to list their startups on Wefunder, fees are 7.9% of the total amount raised if successful. If a company can raise $100,000, then the fees charged by Wefunder would be $7,900. For companies seeking a Reg A+, there is a flat fee of $395,000, which is 7.9% of a $5 million raise.
Wefunder also has a referral program for users. If you refer a company that lists itself on Wefunder, you can receive up to $10,000 if they file a Reg CF raise. The startup’s founder will also save $10,000 in fees and commissions to Wefunder.
Wefunder Payment Methods
As mentioned, you can fund your Wefunder account through a long list of different payment methods. All standard payment methods are available, although different fees and limits are required. Here is a table of the full list of payment methods that Wefunder accepts:
| Payment Method | Deposit Limit | Fees |
| Bank Transfer ACH (US Only) | N/A | 2.0% with a minimum of $8.00 and a maximum of $100.00 |
| Wire Transfer (International only) | N/A | 2.0% with a minimum of $8.00 and a maximum of $100.00 |
| Checks | N/A | 2.0% with a minimum of $8.00 and a maximum of $100.00 |
| Credit Cards | $10,000 | 5.5% with a minimum of $8.00 and no maximum |
| Apple Pay | $10,000 | 5.5% with a minimum of $8.00 and no maximum |
| Google Pay | $10,000 | 5.5% with a minimum of $8.00 and no maximum |
As of 2024, Wefunder does not accept cryptocurrencies. The site only accepts payments and deposits in USD or Euros. If you live outside those two regions, you will also likely face some foreign exchange rate fees.
Wefunder Review of Customer Support
Customer support at Wefunder is a little thin, but there are options if you require assistance. Wefunder has a phone number on its website (415-209-5902) available from 10:00 AM to 5:30 PM PST from Monday to Friday. You can leave a message, and Wefunder support staff will get back to you as soon as they are available.
If you need assistance outside those hours, Wefunder offers an email address at support@wefunder.com. You can send emails anytime, and Wefunder will respond within one business day.
Wefunder does not have any chatbot or chat system available on its website. There is also an FAQ page where you can find answers to plenty of frequently asked questions.
Wefunder Funds
WeFunder also offers funds for batches of startups looking to raise capital. Major venture capital firms like Y Combinator organize many of these baskets. These funds often have a theme like fintech startups.
The company has received plenty of investments from tier 1 venture capital firms in these funds. Industry-leading names like Softbank, Sequoia Capital, and Blackrock have invested nearly $5 billion into Wefunder’s portfolios.
These funds also have a minimum initial investment of $100, and all of Wefunder’s fees and commission rates apply. They are simply a way to get a more diversified investment into multiple startups with one investment.
Final Thoughts: Wefunder Review
WeFunder offers a unique investment opportunity historically reserved for big-money investment firms. Being able to invest in these promising startup companies for as little as $100 is a dream come true. Getting in early on some of these companies can potentially yield massive gains in the future.
Is Wefunder a perfect platform? No. Customer support needs evening and weekend options, especially for people outside the Pacific time zone. The fees are fairly high, especially the minimum investment of $100 compared to other crowdfunding sites.
In the end, the positives far outweigh the negatives with Wefunder. If you want to diversify your portfolio with early-stage startup companies, Wefunder is the place to do it. The risk is high, but the potential returns are incredible. Wefunder is the best platform for investing in pre-public startups that we have used!
If you enjoyed this Wefunder review article, check out our investment community at BullishBears.com!
Frequently Asked Questions
WeFunder is a reputable company founded and managed by well-known venture capitalists. The founders are Y Combinator alumni with years of private equity experience.
As with any investment, you can make money or lose it. As a result, this is where researching a company and its competitors can come into play. All investments with Wefunder are speculative and risky. You can lose your entire investment if the company does not work out.
WeFunder is very secure and uses 2FA or Two-Factor Authentication to log in and carry out transactions. As with any company that accepts payments and deposits, Wefunder utilizes encryption and security to make transactions as safe as possible for users.
Anyone can use WeFunder to begin investing in startup companies. All you need to do is create a Wefunder account and deposit funds. Search through the available investment opportunities or select a Wefunder Fund to invest your money. If the company does well, so will your investment. If it fails, then you can potentially lose your investment.
