💎 Introducing Wefunder VIP 💎

Wefunder is rolling out the red carpet

For those willing to shell out a few hundred dollars, Wefunder has some pretty sweet perks lined up. Discounts, exclusive opportunities, and a physical item you can woo friends with. Here’s all the deets:

• ⬛️ What is Wefunder VIP: The highest status in equity crowdfunding

• ⚔️ VIP vs Owner’s Bonus: Who has the better deal?

• ❓ Should I go VIP: Is it worth it to spring for VIP??

WHAT IS WEFUNDER VIP?

Sparring partners fight over loyal users

What if I told you that StartEngine has a product that brings in $8M annually at nearly 100% profit margins?

What if I told that to their largest competitor, Wefunder?

StartEngine’s Owner’s Bonus is a $275/year membership program with 28,000+ customers enrolled. TLDR: they make bank on it.

The guys over at Wefunder aren’t shmucks, so they of course had to roll out their own fancy membership program.

Wefunder VIP is their answer to the StartEngine Owner’s Bonus, and it was quietly rolled out last week. VIP is not just a copy of the StartEngine program, there’s some really interesting perks that members unlock:

• 10% bonus equity in a number of startups on their platform

• 20% off transaction fees

• Exclusive deal flow, only available to VIP members

• Priority ranking in oversubscribed rounds

• Metal Black VIP card that unlocks ‘dozens’ of discounts at Wefunder alum companies + partners

The black metal Wefunder card is perhaps the most distinct perk offered in the VIP membership. It sounds pretty cool, but I should note that there are no specifics around the actual discounts/perks this card will unlock.

I’m also very intrigued by the ‘exclusive deal flow’ element, it seems to be at odds with equity crowdfunding. Due to the smaller average check size, you want to maximize the number of investors to have a successful fundraise.

If a raise is limited to a small number of investors all writing small checks, I don’t imagine these startups will be able to raise a lot of money. Therefore I’m not sure how Wefunder will convince startups to agree to this, but we’ll see how it goes.

Wefunder VIP will set you back $295 per year, an extra $20 vs the StartEngine Owner’s Bonus.

VIP VS OWNER’S BONUS

Comparing the two to see which is better

Both programs are identical in offering 10% bonus shares to select offerings. However, this does not mean that the perk is of equal value.

Wefunder currently maintains a large lead in the number of startups actively raising on their platform. As of this writing, there are 137 startups on Wefunder compared to just 67 on StartEngine (108% higher).

Meaning, the 10% bonus goes further on Wefunder’s platform than it does on StartEngine.

We then look to the discount on fees. Wefunder provides it’s 20% discount on startup investment fees, whereas StartEngine’s 20% discount is applied to trading fees. StartEngine trading is pretty dormant, so I would say that Wefunder takes the edge here again.

The priority waitlist on oversubscribed rounds + exclusive deal flow is actually the same across the two memberships. Again, I wouldn’t really bank on the exclusive deal flow element, I don’t really see the feasibility in this.

We then have the black metal Wefunder card that unlocks deals from Wefunder partners & alumni. This is unique to Wefunder so again they take the point here.

Stacking these two offerings up, it’s clear why Wefunder is charging $20 more for its VIP program. Even with the price difference, I believe that Wefunder VIP is a better deal than the StartEngine Owner’s Bonus.

SHOULD I GET WEFUNDER VIP?

It’s the better program, but is it worth it?

This all depends on how active an investor you are. For anyone investing over $2,950/year, it’s a no-brainer as the bonus shares alone will offset the membership cost.

However, someone investing $500 a year probably won’t see the same level of benefit to justify the cost.

The 20% investment fee discount is also a nice addition but I wouldn’t factor it heavily into your decision unless your investing large sums.

Based on Wefunder’s fees, a $1,000 investment (made through ACH) would see savings of just $4 from VIP.

Ultimately, if you tally all the benefits together, I think VIP makes sense once you hit the $2,500 investment per year mark (specifically on Wefunder startups).

I fall into that bucket (cool flex, man!), so I will likely be signing up.