Step 2 – How Republic selects startups in 2019

It's easy to get started investing at Republic.co in 2019

Click on the Link to get started

Republic strives to identify and present to you great startups, providing the best investment experience and opportunities. Republic carefully curates the startups for you from thousands of applications.

The selection and review process:

Initial screening
Due diligence
Final decision

1  Initial screening
Republic firsts look for strong positive signals using the FPTM model:
Founders — Product — Traction — Mission

Founders

Among the things Republic looks for:
dedication, diversity, location, charisma, experience, vision, track record, network, competence, long-term partner, ability to execute.

Product

Is the idea (the problem and solution) compelling? What are the execution, quality, attention to detail, and technology like?

Traction

Has there been measurable progress, growth, and social proof (i.e. user engagement, stakeholder engagement)?

Mission

How is this startup going to make the world better?

2 Due diligence

After Republic determines the startup is a good fit following the initial review, they kick off the formal due diligence process: they look at the startup’s business in-depth and, if necessary, tap into our networks to help evaluate the following 8 factors (in no particular order):

Business model

How does the startup make or intend to make money? How much can it make?

Social impact

How big is their impact and how will they fulfill their mission?

Market

How large or disruptive can this business be? What’s their unfair advantage over the competitors?

Technology

How is technology used to solve the problem? How unique and difficult to replicate is it?

Team

Besides founders, does the team have the right people in the appropriate roles, experienced advisors, driven employees?

Fact checking

Is the information presented in the pitch factual? Republic verifies key contracts and important agreements.

Terms

Are the funding goals reasonable for the startup’s runway? Is the valuation cap appropriate at the startup’s current stage?

Eligibility

Does the startup meet the legal criteria for equity crowdfunding? Republic does a financial and legal review and run background checks on founders and officers. As well, all companies must be US based.

3 Final decision

Due diligence extends to the end of the onboarding process. That’s when Republic makes the final decision to launch the campaign, per all the checks being met.
Only then — finally — the startup goes live on Republic for your consideration.
Even after the campaign goes live, Republic continues to fact check and monitor the campaign to ensure investors are educated and protected.

How Republic knows which startups are good

Republics experience + reputable referrals.
Republics team brings experience and knowledge from AngelList – the world’s #1 platform for accredited startup investing, McKinsey, Merrill Lynch, and Zynga, among others. As a team, Republic has deep experiences in investing, online fundraising, law, business, engineering and brand and community building. Republics team have been founders and investors, builders and operators, and we get the support of our vast network of advisors, founders and investors.
Republic considers startups referred to them by sister companies, partners, and networks.

Where Republic finds startups

Because it’s Republics top priority, they spend a lot of time looking for awesome startups. Startups have come to Republic via:
Referrals from partners: sister companies, accelerators, startup hubs, etc.
Republics personal and professional networks
Online applications from Republic
Referrals from companies who have raised with Republic
Events

Republic regularly host events and competitions for startups
Republic travels all over US to tech conferences & events.

Read Next:
How should I invest
Understanding deal terms

HOW CROWD FUNDING WORKS / ANGEL INVEST IN STARTUPS IN 2019

Angel Investor

It’s easy and free to start investing at Republic.co in 2019

Click on this Link to Republic.co to sign up and get started

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.

Follow this Link to Republic.co to learn more and Share with your friends