Can you Make Money on Wefunder?

A startup business can be a good place to invest money

Wefunder is a crowdsourcing site that links investors with startup businesses. There are a multitude of investment types and nearly endless startups to invest in. But can you make money from Wefunder? The answer put simply is yes. The more complex answer is it depends on the type of investment that you choose. Here are some facts about this crowdfunding site.

Some Facts

Wefunder is the largest equity crowdfunder offering investments to non-accredited investors. As of the writing of this article there were over 650,000 investors on the site, and the company has raised over $150 million for the startups and companies using the site.

If you want to invest in a company on the site you only need to make an initial investment of $100, and you don’t need to be an accredited investor. This makes a low barrier of entry to the average investor. Wefunder’s website is user-friendly and full of information on how their services work and on the companies that you are potentially eying to invest in. You can read up on the various investment types and how returns are determined and paid out here.

Is Wefunder for You?

With a low upfront dollar amount needed to invest, and with the site being open to anyone, it is tempting to give crowdfunding a try if you are looking or alternative investments. But is it for you?

Investing on the site can get complex, and the manner and frequency that you will see a return isn’t always clear or straightforward. You will get the ability to invest in brand new and young companies that aren’t listed on the stock exchanges, but this also comes with the risk that you could lose all of your investment. Startups are one of the riskier investments that you can put your money into, as many of them don’t survive.

Pros and Cons

Pros:

  • Wefunder is open to everyone and only requires a $100 minimum investment to start.
  • The website is very user friendly and is filled with information.
  • You will have the ability to invest in alternative and non-traditional investments.

Cons:

  • You could, as with most investments, lose everything.
  • Investing in startups can be complex.
  • Information on potential investments can be unreliable.

Conclusion

Wefunder is the largest crowdfunding site geared towards startup businesses. You don’t need to be an accredited investor to participate, and you only need $100 to get started. However, startups can be a risky investment. Despite Wefunder’s user friendly website it is often difficult to find reliable information on startup businesses. Often the financials can’t be trusted. If you have some extra cash and want to put it to work in something other than the stock market, then Wefunder could be a good alternative. Just approach with caution and don’t invest more than you can comfortably lose.

Read Also:

6 Realistic Ways of Getting Funding for Your Startup

YieldStreet  A 2020 Review

Fundrise: 2019 Review

Alternative Investments: Still the Road to Riches?

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