Republic Review – Equity Crowdfunding for non-accredited investors

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Republic.co Review

Name: Republic
Website: http://republic.co
Price: $10 min per share
Owners: Kendrick Nyguyen & Peter Green
Overall Rank: 85 out of 100

 

Republic – Overview


Republic is beginning a new trend of allowing crowdfunding investing to help startup companies. This investment is known as Venture Capital and was primarily only for Accredited Investors until recently.

Republic is taking small start-ups that have a valuation between $1,000,000 and $20,000,000 and offering a portion of that company’s stock to you, a new investor. Should that company continue to grow your position will grow as well until a “trigger’ occurs. Typically, an exit of either the company being sold in an acquisition or the company submits an IPO to take the company public and trade the stock on the stock exchange.

 

The Good & the Bad

The Good:

PRO #1 – Bonus perk for investing at certain levels

PRO #2 – Good assortment of investment options as low entry levels.

PRO #3 – Investments could potentially provide exponential returns.

The Bad:

CON #1 – No market to sell your shares and position

CON #2 – Investment Companies could go Bankrupt and return nothing

CON #3 – Website is a .co and not a .com, could scare away some investors.

 

Who is Republic For?

 

If you were a non-accredited investor looking for a way to invest in new startup companies providing Venture Capital then this is the product for you. With a low minimum and a handful of companies available to be invested in at any time you could quickly build a nice portfolio with only a few hundred dollars.

What does Republic cost?

Republic is free for investors. The only cost is the amount you invest in a certain company; that gets you that exact amount of value in shares. There are no ongoing fees or costs for investors.

The fees are charged to the companies that are selling shares, 6% of the funds raised and 2% of the securities issued.

 

Who can invest with Republic

To our own surprise Republic states on their own website “As long as you are over 18 years old, you can invest no matter who you are or where you’re from.”

Typically we have seen other companies that can only allow investors from within the United States but Republic allows all investors, though certain companies may still put their own restrictions on who can invest. Also, you may make your investments via ACH, Wire or Credit Cards.

 

My Final Opinion of Republic

Currently, there are no real competitors to Republic for non-accredited investors, but that may change in the next few years. Republic is taking the crowdfunding Kickstarter to the next level.

Just as Ocular VR was backed by investors to the tune of $2.4 million dollars they provided a T-shirt to anyone paying $25 and products at higher prices, but no one earned a share of the stock. However, barely two years later Facebook came and bought the company for $2 billion and none of the Kickstart backers received a penny.

Republic is making a name for itself among startups and investors. The long-term and uncertainty of the future of these companies are the clearest question mark for moving forward with an investment. But since there is always a variety of companies and such a small entry cost for each one it becomes addicting to invest a handful of them and see what the future holds.

 

Republic at a Glance…

Name: Republic
Website: Republic.co
Owners: Kendrick Nyguyen & Peter Green
Price: as low as $10 a share
Overall Rank: 85 out of 100

VERDICT: LEGIT, for now, time will tell if the companies they bring on perform well enough to provide a better long-term analysis.

 

 

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2 Comments

  1. This was a really interesting review of Republic and a great article about investing in start-ups in a crowd sourcing type of way. If you ever wanted a taste of being a venture capitalist this would be a great way to start. I love the idea that anybody from anywhere could invest exactly the amount they wanted to without having to pay additional fees.
    It is always thrilling to invest in new companies that have great ideas or innovative products the only downside I see, is that you wouldn’t be able to sell your shares and get out at anytime, you would need to wait for something to happen to the company you invested in. But if you had a little money and just wanted to see how this played out, it could be a really cool learning how all this works. This “new investing frontier” is something I will be investigating further, thanks for the info.

    • My biggest concern is the uncertainty of when you may receive a return. I but the minimum investment levels can help you feel like you are part of the company no matter your investment size. After each investment, I receive an email from the Founder or CEO confirming my investment and most make mention that they’d love to hear feedback as they are in the growing stages to make them better, and help you feel like you’re part of the team.

      Some may get bought up by larger companies and others may go belly up. But splitting a few hundred bucks on a handful of companies and maybe 20% of them make 10x+ your money can still provide a decent return as well as bragging rights that you were an owner of one of these companies when they were small.

      I’m curious how things evolve over the next few years. I’d like to come back with an update post to share how things worked out.

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