Wefunder vs Streitwise Comparison

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

Invest in startups in exchange for equity

Invest in equity REIT

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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.

Investments
$3,515

The minimum investment amount for Streitwise is $3,515, which is based on a Net Asset Value (NAV) of $7.03 per share.


High Risk
4/5

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

Moderate Risk
3/5

Investing in Streitwise involves risks such as market fluctuations affecting real estate values, limited liquidity with a one-year lockout period and potential for delayed redemptions, discounts on early redemption reducing investment value, concentration in specific real estate markets, reliance on management's decision-making, regulatory changes impacting operations, and sensitivity to interest rate changes.


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.

Minimum Liquidity
1/5

Streitwise's Redemption Plan offers investors a structured way to sell their shares back to the company, starting after a one-year lockout period. Redemption before five years involves a discount, with full NAV redemption available after five years.

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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.

Low Return
7.3 %

Streitwise has offered an average annualized dividend yield of 7.3% since 2020. Future dividends depend on factors like tenant quality and maintenance costs, and cannot be guaranteed.


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.

Long-term Investment
5+ years

Streitwise targets long-term investments, ideally over five years, to avoid early redemption discounts and maximize returns. There's a one-year lockout period, emphasizing the long-term approach.


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.

Who can invest
International

Streitwise is open to both accredited and non-accredited investors, including international participants, with some investment limits for non-accredited investors to ensure their financial safety. International investors can join with certain conditions and may face delays in processing.


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.

Moderate Volatility
3/5

Assets on the Streitwise platform, mainly commercial real estate, typically show lower volatility compared to stocks or cryptocurrencies, due to the slower pace of value changes in real estate. However, factors like economic shifts, interest rate changes, and market conditions can still cause fluctuations, albeit over longer periods.


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.

Regulation and audits
SEC Regulated

Streitwise is regulated under Regulation A+ of the JOBS Act, allowing it to sell securities to both accredited and non-accredited investors with SEC oversight. Although not specified, companies under this regulation typically must submit audited financial statements annually, conducted by independent firms, ensuring transparency and compliance.


Insurance
No

Wefunder does not provide insurance for investments.

Insurance
No

Streitwise has not specified the types of insurance it holds for its operations or properties. Typically, real estate investments are covered by property, liability, and business interruption insurance.


Payouts
No Recurring Payouts

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

Payouts
Dividends

Streitwise pays dividends quarterly, about 10 days post-quarter end, offering payment via check, direct bank transfer, or through a dividend reinvestment program.


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.

Withdrawals

Investors can request to redeem their Streitwise shares after a one-year lockout period, with redemptions processed quarterly. Early redemptions (before five years) face discounts, while shares held for five years or more are redeemed at 100% NAV. Quarterly redemption limits may delay processing.


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.

Extra Fees
No

Streitwise charges a straightforward 2% annual fee on investments, taken from dividend payments, not the principal. There are no additional or hidden fees, making its fee structure transparent and investor-friendly.


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.

Taxes
Tax Form

Streitwise provides a Form 1099-DIV for tax reporting by January 31 each year, detailing dividends which may be taxed as return of capital, capital gains, or ordinary income.

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