Republic Investing Platform Review 2024: Pros, Cons, and Rating

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Republic is an investing platform that allows the general public to invest as little as $25 in early-stage startups, crypto, real estate, art, music, gaming, and more.

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My Take

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Platform rating: 4/5 

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The bottom line: Republic is a simple way for investors to diversify their investment portfolios by participating in various offerings on the platform, including venture-backed startups like Maven, moonshots like Aptera Motors, luxury condos in Miami, crypto platforms like Cultos, and more.

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Pros & Cons

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Pros

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• No minimum to sign up on the platform.
• Wide range of offerings – startups, crypto, real estate, art, etc.
• Wide range of investment contracts – equity, tokens, debt.
• Investment opportunities for as little as $25 to participate.
• Excellent investor education materials.

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Cons

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• High risk.
• No public track record of startups on the platform making investors money.
• No way to see how much your investments are worth.
• Information on Republic profiles is often projections and assumptions and needs to be fact-checked for accuracy.

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Republic is best for:

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• Investors that want to diversify their portfolios by investing in the private markets.
• Risk-tolerant investors.
• Investors who wish to access venture-backed startups.
• Investors that are comfortable waiting 10+ years for a possible return.

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Full Review

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Billed as the future of private investing for investors seeking high-growth potential, Republic allows anyone to invest across startups, gaming, real estate, and crypto. Republic has funded 2,000+ ventures and deployed over $2.5 billion in capital to date.

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Republic constantly pushes the boundaries for investment in the private markets by creating new investment contracts like The Token DPA, launching profit-sharing digital tokens like the Republic Note, and building a secondary market for investors on the platform to have more liquidity. 

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Republic has all the components to be an industry leader in private market investing for a long time. The company is well-funded, having raised $200+ million from Valor Equity Partners and other notable institutional investors, regulated by the SEC and FINRA, and diversified, so if one asset class falters, it’s unlikely it’ll bring down the entire platform. 

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Republic by the Numbers

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Community members: 2.5 million+

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Funds deployed: $2.5 billion+

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Funded ventures: 2,000+

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Unicorns (startups valued at more than $1 billion): 29

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Republic Basics

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Platform minimum: There is no minimum to sign up for or to maintain on the platform.

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Minimum investment: $25. However, each startup picks its investment minimum.

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The number of companies to invest in: 34 (as of May 2023)

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Republic Investor Fees & FAQ

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Fees: None. Republic is free for investors.

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Who can invest: Anyone 18 years or older can invest. However, each company listed on Republic reserves the right to deny any foreign purchaser’s purchase of the securities. At the Ontario Securities Commission’s request, investors who reside within their jurisdiction are currently prohibited from participating in all investment opportunities on Republic.

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How to invest:

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• Sign up for a Republic account.
• Click on a company’s campaign page.
• Click the blue “Invest” button on the right-hand side.

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Payment methods: 

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Payment methods vary based on the offering, but Republic generally supports the following:

• Credit cards
• Debit cards
• ACH transfers from US bank accounts
• Wire transfers from any bank account
• Crypto payments (varies based on the offering)

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Refunds: 

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• For all Regulation Crowdfunding (Reg CF) offerings, you can cancel your investment up to 48 hours before the offering’s deadline or intermediate close date.

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• Regulation A+, D, and S offerings are typically final sales. You may be unable to cancel a commitment for one of these investment opportunities under any circumstances. 

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Republic Features to Know About

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Republic Note: A digital asset that empowers token holders to share in the success of Republic’s most impactful private companies. The Republic Note pays out dividend distributions each time the cash pool from exits and other liquidity events reaches $2 million. Read more about the Republic Note here.

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Autopilot: Passively build a diversified startup portfolio. Republic Autopilot allows you to set the amount you want to invest and fine-tune your investment preferences, including sectors, highlights, business models, impact, and more. The minimum you can set on Autopilot is $50, and Republic does not charge any investor fees to use the product feature. 

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Republic Deal Room: The Republic Deal Room allows accredited investors to access private investment opportunities backed by top-tier venture capitalists. Investment minimums range from $1,000 - $10,000 for deals in the Republic Deal Room. 

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Republic Secondary Market: US Investors with US bank accounts can sell Crowd SAFEs from companies that previously raised on Republic on the Republic Secondary Market. Investors simply need to request to sell the asset and set the price they are willing to sell them for. Buyers of secondary shares must be accredited investors. 

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Special Deal Terms: Startups on Republic may elect to offer Special Deal Terms to offer slightly better terms to investors to incentivize investors to back them before everyone else. For example, a startup raising on a $10 million valuation cap may offer investors Special Deal Terms to invest at an $8 million valuation cap for the first $100,000 investors. 

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Perks: While equity, debt, or tokens is the primary incentive for someone to invest on Republic, startups may offer perks to investors as a secondary incentive. Similar to Kickstarter, the investment amount dictates the structure of the perks. For example, a startup may offer company swag, VIP access to new products, and future discounts.

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Referral Program: Republic offers users $2,500 for every successful referral of startups that launch on the platform. You can also receive free Republic swag if five friends sign up.

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Various offering types: Republic conducts Regulation CF (Reg CF), Regulation A+ (Reg A+), Regulation S, and Regulation D (Reg D) offerings and raises capital to invest directly from its venture capital arm, Republic Capital, in startups, crypto, real estate, gaming, and more —the type of offering dictates who may participate and the investment limits for each investor. For example, Regulation D offerings are only available to accredited investors. 

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Various investment contracts: Republic has a mix of equity, debt, and token offerings. Companies listed on Republic may offer the following:

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• Crowd SAFE (simple agreement for future equity)
• Crowd SPA (stock purchase agreement)
• Crowd CPN (convertible promissory note)
• Token DPA (debt payable by assets)
• Crowd TPA (token purchase agreement)
• FPA (film participation agreement)
• CRN (crowd revenue note)

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It’s essential to read the investment structure on each startup’s teaser page before deciding whether to invest, and you can learn more about the terms of each investment contract here.

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Is Republic suitable for you?

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Republic is an excellent option for investors wanting access to high-potential investment opportunities across various offerings. Its sleek interface and easy-to-understand investor education materials make it accessible for first-time investors, and its access to venture-backed deals makes it a must-add for experienced angel investors. As a result, Republic reduces the barriers for startups and investors alike to share in the upside of investing in the private markets.

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Republic may not be the best platform for local small business investments as its team conducts due diligence on offerings for high growth potential. Additionally, investors looking for short-term returns may find better luck elsewhere as most investments in Republic are in early-stage startups and don’t have liquidity events for sometimes up to 10+ years. 

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What to watch for in the future

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• Republic to continue to push the boundaries of what it means to invest in the private markets. As more users onboard to the platform, look for Republic to build products to make investing more social by allowing investors to interact with founders and other investors, double down on its investor education materials and events, and partner with leading venture capital firms and angel investors to access high potential startup deals.

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• Republic to continue to expand internationally. In 2021, Republic acquired Seedrs to expand to Europe and is actively investing in Asia.

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• Republic to increase the number of investments with the potential for short-term returns.

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