How much is a Lead Investor compensated?
Wefunder Investors compensate the Lead Investor - not you.
A Lead Investor earns 5% of all the profits made by investors on Wefunder after an acquisition or IPO (this is like a 5% carried interest stake, but taxed as ordinary income).
What does 5% mean in terms of money? Let’s pretend your startup is the next Uber and you used Wefunder to raise your $1M for the seed round. That $1M would be worth $5 billion at IPO (based on Uber's return multiple from seed through IPO). The Lead Investor would earn $249,950,000 - 5% of all profits from Wefunder investors.
The Lead Investor can also earn 5% carried interest in any follow-on financing rounds that may or may not be offered.