WeFunder - Investor Questions Answered

We asked WeFunder several investor related questions and Mike Norman was kind enough to provide us with his company's answers.

  1.       Do you use 506b or 506C regulations and why that one over the other?

 We do both

  1.      What fees do you charge the investors and sponsors? (% ranges for up front and annual fees)

Generally a 10% carry plus a $25 -$75 fee per investment depending in the amount. Some investments have no fees no carry. 

  1.      What is your due diligence process for investments that are listed on your portal?

We look for user and/or revenue traction, big markets, name brand investors and accelerators that have invested, aspirational startups solving big problems, and compelling experienced founders.  

  1.      How much VC capital have your raised to date?

 Over $2 million

  1.      What safeguards are in place for your investor’s money if your platform is forced to shut down?

All investment flow through separate LLC's that exist independently of the platform so they are protected in the unlikely event that Wefunder shuts down.

  1.      Is your platform associated with a registered broker? (why or why not)

At the current time we operate as an exempt reporting advisor but that may change once the 4a6 rules are put into place. Operating as an exempt reporting advisor is less costly for us and as a result investors and companies. 

  1.      How do you verify if an investor is accredited?


  1.      What is the investment minimum for your platform?

 $100 platform wide but some investments have higher minimums

  1.      How often are updates on investments?

 This depends on the company. Some update quarterly, others more or less. 

Share with Email
Top 5 by Overall Rating
A Premier private lending company, we build healthy returns through real estate investing and lending opportunities.
Crystal View Capital is a real estate private equity firm which focuses on acquiring and managing underperforming self-s
Griffin Partners is an entrepreneurial commercial real estate investment, development, and property management firm. We
The RealSource Group of Companies benefits from their proprietary "Econometric Model" which has been in use since 1
To see feedback and discussions from actual Broadmark investors, join over 1600 accredited investors at the 50
Website - Real Crowd Fees - NONE Phone - 800-286-1602 SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed Real Crowd is a private, secure, and simple-to-use online platform for accredited investors to assess, r
Website - CrowdStreet Phone - 888 432-7693 SEC REG - USES 506(c) - Open Investments can be advertised and publicly discussed CrowdStreet allows accredited investors to purchase real estate investments through their platform, which is essentially synd
To see feedback and discussions from actual Fund That Flip investors, join over 1600 accredited investors at the 506 Investor Group. 506 Group negotiates lower fees and better terms versus investing direct. URL - Fund That Flip Fees - 2% to
Website - Holdfolio Fees - Various Phone - 317-440-1515 SEC REG - USES neither 506b or 506c Holdfolio was founded on the principle of creating profitable partnerships. We believe individuals need to earn above average return
Website - Brelion.com Fees - Various Phone - (888) 564-3213 SEC REG - TBD Brelion is owned by the same company that owns Smartland sponsor and Peer Realty crowdfunding platform. As real estate developers ourselves, we underst