It’s easy and free to start investing at Republic.co in 2019
1 Become an investor
It’s free and takes seconds
2 Pick a company
from those actively raising
3 Invest online
And you’re a startup investor!
What's so special
Crowdfunding is not new, but until recently, “crowdfunding” in the U.S. meant buying a product or donating money. Separately, only wealthy people were allowed to invest in early stage private companies. Thanks to Republic and newly adopted laws, you can now be an angel investor in startups, no matter who you are or where you live.
The law requires that before you invest, you first understand the risks and the rules of investing. At the very least, please review the educational materials we provide and consult additional resources at your discretion.
What do I get when I invest
When you invest on Republic you receive a financial stake in the company in the form of a security. Most startups on Republic opt to use a security called the Crowd SAFE. In addition, most companies choose to give out perks as a reward for your investment.
Startup investing can be fulfilling beyond the potential monetary return. Not only are you joining founders on their exciting journey, you’re betting on a company’s future and gaining a chance to aid in their success.
How do I get a return
Startup investing is risky and there are no guarantees of a return: many startups fail, and investments are lost. But some startups will succeed, and if they get acquired or IPO at a valuation higher than the one at the time of your investment, you will earn a return.
Additionally, if the company has another financing round, it can decide to issue Shadow Shares to you, with economic rights that provide a return.
Crowdfunding-specific limitations and rules you should know about:
Limited investment amount
You can only invest up to a certain limit per rolling 12 months across all equity crowdfunding campaigns (not limited to those on Republic). Your limit is automatically calculated based on your income and net worth when you create an investor profile on Republic.
Limited transfer of securities
The securities (in most cases, the Crowd SAFEs) you get when you invest have limitations of transfer for the first year following the investment. You can only transfer (gift or sell) the securities:
• Back to the startup
• To an accredited investor
• To an immediate family member
• In these other cases (see below)
Can I sell my stake in the startup?
You’re allowed to sell your stake in a crowdfunding investment starting one year after your investment is provided to you, and earlier under some circumstances.
However, there’s no guarantee that someone will be willing to buy it at that point.
Click on the link below to Republic.co to learn more about Angel Investing. I will share more topics for how crowd investing works and becoming an Angel Investor in the coming weeks. You can also follow me at moneysensewithkyle.com and I will share the journey with you.