DiversyFund vs Wefunder Comparison

Assess their risks, liquidity, investments, returns, timeframes and other terms

Invest in multifamily rental properties

Invest in startups in exchange for equity

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Investments
$500

DiversyFund's minimum investment amounts differ by investment type. It's $500 for Growth REITs targeting multifamily properties. For accredited investors, Premier Direct SPVs require a $50,000 minimum, while the Premier Opportunity Fund has a $25,000 minimum.

Investments
$100

The standard minimum investment on Wefunder for most Community Rounds is $100. However, the exact minimum can vary based on the specific offering and the investor's status as an accredited investor.


Moderate Risk
3/5

Investing in DiversyFund carries risks such as market changes, economic factors, and specific property risks, and there's always the potential for loss, including the initial investment.

High Risk
4/5

Investing in startups on Wefunder is highly risky, and there's a real possibility of losing your entire investment.


Minimum Liquidity
1/5

DiversyFund investments are illiquid, with capital committed for approximately 5 to 7 years. There is no secondary market or immediate option for investors to sell their shares prior to the end of the investment term.

Minimum Liquidity
1/5

Wefunder's investments are not highly liquid, as there is no public market for selling your stake. After one year, you can sell to any interested buyer.

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Moderate Return
11-18 %

DiversyFund has historically reported annual returns between 11% and 18%, but future returns can vary and are not guaranteed.

Not Predictable Return
N/P

On Wefunder, investors can earn returns through different investment mechanisms: Debt, Convertibles Stock (No Dividends), Stock, Dividends. Investment returns on Wefunder vary by investment type, with dividends more typical in later-stage, non-tech businesses.


Long-term Investment
5-7 years

DiversyFund's REIT I has an investment term of 5-7 years, and the company is using the full term to maximize property values before sale and subsequent investor disbursements.

Long-term Investment
7 years

Investments on Wefunder are long-term, with an average return period of around seven years, particularly for convertible notes or SAFEs.


Who can invest
United States

DiversyFund's Growth Offerings are accessible to all investors, while its Premier Offerings are restricted to accredited investors only.

Who can invest
International

Individuals 18 and older can invest on Wefunder, regardless of whether they are accredited or non-accredited investors. Additionally, Wefunder allows investments through entities.


Moderate Volatility
3/5

Real estate assets on DiversyFund can experience volatility due to market conditions, interest rates, and local economic trends, potentially impacting property values and investment performance.

Moderate Volatility
3/5

The assets on Wefunder, primarily startups and small businesses, are highly volatile due to the uncertain success of these ventures and fluctuating market conditions.


Regulation and audits
SEC Regulated

DiversyFund is subject to SEC regulations and conducts regular audits to ensure financial transparency. These audits and disclosures are available for investor review as part of the company's compliance with regulatory standards.

Regulation and audits
SEC Regulated

Wefunder is regulated by the SEC and FINRA under Regulation Crowdfunding (Reg CF), requiring it to adhere to strict rules about investment limits, company fundraising, and disclosures.


Insurance
Yes

DiversyFund's properties are generally insured against physical damage, but this insurance does not cover market-related losses or economic downturns, and it may not fully cover the properties' market value.

Insurance
No

Wefunder does not provide insurance for investments.


Payouts
No Recurring Payouts

DiversyFund generally reinvests dividends into property renovations rather than distributing them, supporting a strategy aimed at long-term asset appreciation.

Payouts
No Recurring Payouts

Wefunder investments typically do not offer dividends, as they are often in early-stage startups focusing on growth.


Withdrawals

Investors in DiversyFund can receive their money back after the properties are sold, typically at the end of a 5 to 7-year investment term, without an early withdrawal option.

Withdrawals

On Wefunder, investors primarily see returns from liquidity events like acquisitions or IPOs, where investments may convert to cash or shares. After the first year, shares can be sold to any interested buyer, with Wefunder facilitating the transfer process. For debt investments or revenue shares, returns follow the agreed terms, like fixed repayments or revenue-based payouts.


Extra Fees
Yes

DiversyFund collects asset management fees and transaction fees, and may also earn a promote interest from net profits after investors receive their returns.

Extra Fees
Yes

Wefunder charges a one-time transaction fee of 2% for bank payments and 5.5% for credit card payments. For WeFunds, an administrative fee covers lifetime costs like filings and accounting, with no additional contributions required from investors.


Taxes
Tax Form

DiversyFund provides Form 1099-DIV and/or Form K-1 for tax reporting, accessible online, with dividends taxed as ordinary income and end-of-term distributions potentially as capital gains.

Taxes
Tax Form

Wefunder supports tax reporting for investors by providing Schedule K-1 forms for those invested through LLCs or SPVs, detailing taxable gains or losses. For investments receiving payments, such as revenue shares, Form 1099 may be issued to report income.

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