What fees do investors pay?
For payments made by bank ACH, wires, or checks, Wefunder charges investors a transaction fee of 2%, with a minimum of $8 and a max of $100.
For credit cards, Wefunder charges a 3.5% fee.
For equity investments, investors who have shares held by a Custodian also pay an XX Team Fee of 10%. The 10% fee only applies to the profit earned on an exit - such as an acquisition, IPO, or secondary trade.
It works similarly to carried interest. For example, if you invested $1000, and you later sold your shares for $10,000, you would keep $9100 while XX earns $900.
The XX Team fee is not paid to Wefunder (or any of its affiliates), but to XX. The XX team are incentivized to help the company succeed and grow, and are only paid if they are successful and investors earn a profit.
50% or more of the 10% fee is paid directly to a Lead Investor whose job is to direct the voting of all securities sold on Wefunder, and fight for the interests of investors.