If you’re looking for StartEngine alternatives for your crowdfunding needs, you have a few options to consider. Two of the most popular alternatives are Republic and Wefunder. In this article, we’ll take a closer look at these two platforms to help you decide which one might be right for you.
Overview Of Republic And Wefunder
Republic and Wefunder are both investment crowdfunding platforms that allow startups and small businesses to raise capital from a large pool of investors. Both platforms offer a range of investment opportunities, including equity, debt, and revenue sharing deals. As with StartEngine, these platforms are also open to non-accredited investors.
Types Of Investments
StartEngine offers more than just startups on their platform. They have their collectibles offerings and have previously tried to include real estate opportunities as well.
As StartEngine alternatives, Wefunder and Republic have different things to offer. Wefunder focuses primarily on equity crowdfunding, but also has unique debt and revenue sharing opportunities. Republic has fewer startup opportunities on the platform, but offers the widest range of asset classes. On Republic there’s been real estate, wine, art, litigation finance, and more.
Deal Flow And Liquidity
Based on third-party tracking of equity crowdfunding platforms, both platforms had strong deal flow. Republic had more than 600 offerings in 2022, an average of almost 2 per day. While that’s impressive, it lags behind Wefunder’s 1,700 and StartEngine’s 1,300 offerings.
In terms of liquidity, Republic has a secondary market available in beta while Wefunder does not have a secondary market. As with StartEngine, for right now, it is best to assume that you will not be able to resell your shares to another investor.
Fees And Minimum Investment
When it comes to fees and minimum investment requirements, both Republic and Wefunder are fairly similar.
Republic charges two fees for successful offerings – 6% taken in cash and 2% taken as equity through a SAFE (simple agreement for future equity). These fees are not taken from investors.
Wefunder has a different fee structure. Successful campaigns face a 7.5% fee for Reg CF offerings, or $375K for Reg A+ offerings. Investors also pay the higher of 2% or $8 as a fee for funding the investment.
Both platforms generally have a minimum investment of $100 per offering. There are exceptions to this though. Some equity crowdfunding opportunities have minimums that go up to $500, while opportunities exclusive to accredited investors can have minimums as high as $5,000. Additionally, Republic has recently re-launched their Autopilot, which allows for investments at $50.
Investor Protection
Investor protection is an important consideration when investing in startups and small businesses through crowdfunding platforms. Both platforms take steps to protect investors, including conducting background checks on company founders and providing investors with access to company updates and financial statements.
Success Rates
Ultimately, the success of a crowdfunding platform is measured by its ability to deliver returns to investors. Both platforms have a track record of successful offerings, with Republic boasting a 90% success rate and Wefunder’s coming in at 86.5%, per KingsCrowd.
Other StartEngine Alternatives
While Republic and Wefunder are two of the most popular alternatives to StartEngine, there are other platforms worth considering. Some of these include:
- Fundable: A platform that allows businesses to raise capital through both equity and rewards-based crowdfunding.
- AngelList: A platform that connects startups with accredited investors and allows them to raise capital through equity crowdfunding.
Conclusion – The Best StartEngine Alternatives
When it comes to finding StartEngine alternatives, Republic and Wefunder are two strong options to consider. Both platforms offer a range of investment opportunities, investor protection measures, and have a track record of successful offerings. Ultimately, the choice between the two will depend on your personal investment goals and the types of offerings and features you’re interested in.
