Fundrise vs Wefunder Comparison

Assess their risks, liquidity, returns, and timeframes

Invest in private assets like real estate, private credit, and venture capital

Invest in startups in exchange for equity


Investments
$10

Fundrise allows a minimum investment of $10 for taxable accounts and $1,000 for IRAs.

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 with Fundrise involves risks such as limited liquidity, potential modifications to the share repurchase program, market volatility affecting asset values, the possibility of total investment loss, and regulatory changes impacting operations.

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

Fundrise offers liquidity through its share repurchase program, allowing investors to redeem shares quarterly with no penalties or costs.

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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Low Return
4.81 %

Investors on Fundrise can expect returns through dividends and appreciation, with an average income return of 4.81% over 7 years.

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+ years

Fundrise is designed for long-term investments, ideally for a period of 5 or more years, due to its focus on strategies aimed at long-term return potential.

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

To be eligible to invest with Fundrise, individuals must meet several criteria: they must be at least 18 years old, have permanent residency in the United States, possess a valid U.S. tax ID, and file taxes in the U.S. The platform is open to both accredited and non-accredited investors.

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

Assets on the Fundrise platform, such as private real estate and venture capital, typically show lower volatility compared to public stocks and bonds, due to less frequent valuation updates and reduced exposure to daily market swings.

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

Fundrise is regulated by the SEC and must comply with strict reporting, disclosure, and operational standards. It undergoes regular independent audits to verify financial accuracy, legal compliance, and the effectiveness of its internal controls, ensuring transparency and integrity in its operations for investor protection.

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
No

Investments on Fundrise, including real estate and alternative assets, are not insured by the FDIC or any other government agency, exposing investors to the risk of loss without insurance protection.

Insurance
No

Wefunder does not provide insurance for investments.


Payouts
Dividends

Dividends are paid quarterly, based on income from portfolio projects, and can be either reinvested or cashed out. Appreciation comes from increases in the value of the investment, reflected in the net asset value (NAV) of shares. Returns start accruing after investment settlement, typically within 5 business days, and can be tracked on the Investor Dashboard.

Payouts
No Recurring Payouts

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


Extra Fees
Yes

Fundrise charges a 0.15% annual advisory fee, a 0.85% management fee for real estate funds, and a 1.85% management fee for the Innovation Fund. Early liquidation of eREIT or eFund shares before 5 years incurs a 1% penalty.

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

Fundrise investors can expect Form 1099-DIV for eREITs or interval funds with distributions over $10, Schedule K-1 for eFund shares, and Form 1099-B for liquidated shares. Tax documents are issued at the end of January for 1099-DIVs and mid-March for K-1s, available on the investor dashboard. Multiple funds in a portfolio may result in receiving multiple tax forms.

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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