Overview
Republic is a private and a leading crowdfunding platform, established to help startups raise funds through investments.
Non-accredited investors can now sign up and start investing in start-up companies in a few minutes. Yes, they can, with Republic what was hard to access it’s become accessible and only for $10.
Since its establishment, Republic has helped over 200 startup companies of various industries to raise and fund their projects by allowing regular investors to invest in them.
In this review, you will learn all that you need about the Republic platform. Including, its offerings, potential cash flow, its due diligence expectation, plus pros and cons
| Service | Republic |
| Founded | 2016 |
| Investment type | Venture, Real estate, Video games, Crypto |
| Sectors | Agriculture, Child Care, Fashion, Hardware, Media, Mobile, Pets, Retail, Residential Real Estate, and Video Games |
| Minimum investment | $10- some companies accept minimum investment from $20-250$ |
| Audience | All investors |
| Investors fees | No fees $0 |
| Due diligence process | Pre diligence |
| Securities offered | SAFE, some Tokens |
| Investors resources | Company documents, blogs and research section |
| Pros |
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| Cons |
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Types of investments Republic offers
According to the Republic date of performance since 2016 we found the following:
- +$500 million of investment
- Over 500 successful deals were made on Republic platform
- Over 500 startup company uses Republic offers to raise funds
- 82 startup companies manage to raise over a million-dollar through the platform
There is more data, but this date is enough to make a point, Republic really is a leading crowdfunding platform.
- Seed Stage companies or simply early-stage startup companies that what Republic list on its platform.
- However, there might be some rare cases or non-typical cases, such as high investment levels.
- In those cases, companies typically offer additional perks but totally the offers based on the investment level.
- Republic accepts less than 2.5% of the applications they receive because we consider it as a highly curated platform.
- The platform is open 24/7 for everyone, founders and investors.
- If you are a founder you must pass the extensive due diligence process and have a positive final decision to get your company listed on the platform.
- Over the years, Republic has listed various companies of different industries, and most of its deals are backed by the world’s leading funds and angel investors.
- For example, DFJ, USV, and Y Combinator.
- In 2020 Republic started a new platform, Republic real estate, that specializes in crowdfunding only real estate start-ups.
Republic key features
Autopilot: These services are considered free of charge and customized based on each investor’s preferences and investment goals.
Republic initiated the Autopilot feature for investors who don’t have the time to navigate on the platform. Inventors only need to set up their parameters based on their preferences, and the account will automatically pick up start-up investment opportunities with potential growth and returns.
Vetting and due diligence Republic list and select only high vetted companies based on their founders, products, and mission.
The due diligence process ensures that only highly vetted companies can be listed on the platform. That way, it ensures that inventors are not risking their money on any company.
Flexibility: The platform offers transparent minimum investment down to $10 per investment.
Plus, it’s easy to sign up, open an account and navigate the platform. Republic considers it a straightforward and easy-to-use crowdfunding platform.
What do you get when investing with Republic?
When talking about crowdfunding platforms like Republic or SeedInvest there are three major categories. Reward-based crowdfunding, donation-based crowdfunding, and equity crowdfunding.
Republic and similar platforms such as SeedInvest are considered equity crowdfunding platforms because they offer equity shares to their investors. Republic offers listed seed-stage companies the opportunity to raise funds from high-net-worth individuals, institutions, and investors.
Compared to other crowdfunding platforms Republic is super affordable, it offers low minimum investment with no fees or charges. Even non-accredited investors can get involved and start investing in startup equities that Republic offers.
Straight to my point, now with republic You :
- Have free access to high vetted startup equities
- Can invest and earn equity starting from $10. Though, the rate may change depending on what seed-stage company you want to invest in
- You can access and be part of the entrepreneurs and start-up world
How does Republic make money?
Nothing comes for free still, we’ve noticed that investors can sign up, open an account and start investing with no fees. So, the question here is, from where does the Republic earn its profits?
Republic’s main focus is to provide the opportunity of crowdfunding for early-stage companies, in return, they ask for commission fees. There’re two types of fees, the commission fees the company will pay 6% of the total raised fund through the platform.
Republic will hold a total of 2% of the company’s securities. That’s how the company will raise money.
For example, Sugarfina, a start-up company that managed to rise $2.452.080. Republic will take $147124.8 as commission fees for the total raised fund (6%). Plus, $49041.6, as retailed securities.
Potential cash and return
Investors must be aware that by investing in angel startup opportunities they’re risking their money. It is a fact because most startups end up failing in the market, some angel investment will grow that is guaranteed but not all.
Republic investments are considered a high-risk angel investment, and there are no guaranteed returns, dividends, and shares with angel investment. The platform offers you the chance to build and diversify your profile, it can be a manual or autopilot account. This feature helps investors to avoid losing money and cover up the potential losses.
Experts find it hard to determine how much you can earn or lose with angel investment because these investments are speculative. However, there are rare cases when a startup grows high and big, which comes with great returns and rewards. That’s the idea of Republic, to find and fundraise the next angel headshot
The breadth of offerings on Republic
Replace select, feature, and list only high potential angel investment or early-stage companies. Based on its website, less than 2.5% will be listed and featured to raise funds. All companies must go through the due diligence process. This includes providing information such as their founders, project idea, and their mission.
Since its establishment, Republic platform has raised over $500 million of startup investment with more than 400 active deals with startup companies. Even at the current moment, there are probably dozens of new applications from entrepreneurs and innovators.
Non-accredited investors are also welcome to contribute and earn from investing in any angel investment opportunity the platform is listing.
Republic offers a wide range of sectors, industries, and business models such as Games, Crypto, real estate, and entertainment.
Regulatory framework and due diligence expectations
Like most equity crowdfunding platforms Republic is also an SEC-registered company. Typically platforms and companies that are SEC-registered titles are obligated to follow strict rules and extensive due diligence processes to ensure their services meet the highest expectations.
That being said, early-stage companies that want to put their name on the platform are subject to rules, screening, and due diligence processes.
How does Republic list companies?
To be selected and featured on the platform, there are three stages or processes:
- Initial screening: In this stage, the company will review and try to indicate strong and positive reviews about the applied company. Usually include analyzing and gathering information about the company founder, its products, its mission, and traction. The data results must be positive to move forward to the second stage.
- Due diligence process: we are talking about business models, social impact, team skills, the company vision, and more. The due diligence process must be extensive. All details, even the smallest, will be subject to checking. That explains why Republic accepts less than 2.5% on its platform.
- Final decision: Republic will decide based on the company’s due diligence results whether to list it on the platform or not.
Conclusion
Investing in angel and early-stage companies are generally considered risky if you consider working factors like economic performance and downturns. Most new companies will likely fail, however, Republic offers you and founders, a great opportunity to earn equity returns and become a part of the angel and entrepreneurs world.
With the autopilot option and the ability to choose what companies to invest in, Republic comes as a good option to start investing with angel. My final word would be, investing with Republic is worth taking the risk because the gains are unbelievable, even if they are rare.