Republic.com Review – Crowdfunded Investments
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With low minimums and an easy-to-understand, transparent user interface, Republic is a great way to get involved in venture capital work.
9/10
Cost
10/10
Features
8/10
Ease of use
9/10
Services
8/10
When it comes to investing, diversification is an integral part of any portfolio. This is because having investments in different asset classes helps reduce your risk of putting all of your eggs in one basket, which can be particularly important if you’re holding a variety of securities, each with its own level of liquidity.
While it’s possible to diversify your portfolio and holdings across things like stocks, bonds, mutual funds, and ETFs, accredited investors can access a broader range of asset classes than everyday investors. Part of this concerns cash flow since an accredited investor has a high net worth and income of over $200,000 annually, allowing them to take on more high-risk investment opportunities like investing in venture capital and real estate. That being said, there are perks to these sorts of investments that investors can reap — if they are qualified to make these investment decisions, too. This is where equity crowdfunding platforms like Republic.com come in.
Republic.com has been one of many crowdfunding platforms in recent years to offer non-accredited investors the opportunity to get into investing in startups and real estate. Equity crowdfunding is thus catching on with startups looking to boost their fundraising efforts since regulation crowdfunding can generate buzz about a company, similar to social media.
Is Republic.com the right investment platform for you? Read this review to learn the pros and cons of the crowd-investing platform and what features will benefit you most.
In this article
What is Republic.com?
Republic.com is a crowdfunding platform connecting individual and institutional investors to different investment opportunities. Republic.com has helped over 2.5 million users invest over $1 billion, from startups and real estate to crypto and video games since 2012.
Republic was co-founded by Kendrick Nguyen and Paul Menchov, who both bring considerable experience as co-founders. Before starting the Republic platform, Nguyen was General Counsel at AngelList, the largest online private investment company. At the same time, Menchov served as the Head of Fundraising Infrastructure at AngelList and co-founded CoinList. Together, they envisioned a platform that democratized fundraising by letting anyone interested in equity investing get a piece of the pie.
Republic.com is a funding portal for pre-IPO companies and startups crowdfunding via A, CF, and D funding campaigns.
One place for all your investing
Options Trading
- Get up to a $0.18 rebate
- No commission or per-contract fees
High-yield cash
- Earn 5.1% APY*
- No fees. No subscription required.
Bonds
- 6% Yield or more
- Explore thousands of bonds yielding 6%+
Crowd SAFE
One thing differentiating Republic from other crowdfunding investment platforms is its trademarked Crowd SAFE (Simple Agreement for Future Equity). Crowd SAFE has the most impact on startups looking to fundraise through the platform since, in effect, it makes it so that every investor through Republic (sometimes hundreds) is represented as one line item on their cap sheet.
As an investor, your name will never appear on a cap sheet, even during a liquidation event. It also means that you won’t be able to convert your investment unless there’s a liquidity event, such as a change of control, IPO, or acquisition. To put it another way, you can think of Crowd SAFE as a convertible note for the founders of any startup using Republic’s crowdfunding platform to raise funds, except that it doesn’t have an interest or a maturity date.
Related: Best Crowdfunding Investing Apps
Opening an account on Republic
To start with Republic, you only need to sign up for an account. The team behind the platform has worked hard to ensure that the signup and investing process with Republic is as streamlined and straightforward as possible. They want to make investing in equities (a historically tedious process involving lawyers and thousands of dollars) as simple as shopping online, and they’ve accomplished that goal.
When you sign up with your email address, you’ll need to provide your account's first and last name and password. From there, you’ll read and answer a few questions to help you understand the risks and limitations associated with crowdfunding. While this section can feel daunting, Republic provided many learning materials to explain further how and why they operate the way they do.
It’s worth remembering that many of these facts are valid if you open an online brokerage account at Vanguard, too; however, Republic is much more transparent in where and how they explain these facts to you.
Although investing in startups is high risk, and there are limitations on when and how to sell your securities, Republic.com walks you through diversification strategies. You have the right to cancel an investment up to 48 hours before the deal deadline, and it explains your investing limits, depending on your net worth, if you’re not an accredited investor.
Next, you'll be invited to share some information about yourself so that companies and investors can get a feel for who you are, what you look like, and what sorts of investments you’re hoping to make on the platform.
After you’ve completed that portion, you can get started investing! If you’ve ever used a crowdfunding platform like Kickstarter or IndieGoGo, you’ll be very familiar with the user interface and how information is displayed on Republic.
When you click on a specific company to invest in, you’ll learn how much money they’ve raised to date, the number of investors who’ve contributed to the fundraising campaign, the number of days left to invest, and the minimum amount required. Companies can also share a wealth of information about their business model and projects, including their pitch, valuation, highlights about the company, what problem they’re trying to solve, and how they’ll solve it. All of this information can be useful for determining which companies you’re most interested in supporting and how they match up with your values as an investor.
How much does Republic.com cost?
Republic.com charges its investors nothing to use its service. Instead, they make money by taking a percentage of what startups raise on their platform. This means that aside from contributing the minimum amount to invest, you won’t spend a penny to use Republic.com as an investor.
Republic.com features
Autopilot
If you don’t want to be actively involved in investing with Republic, you don’t have to be. With their Autopilot functionality, you can set your monthly contribution limit and “set it and forget it.” This hands-off approach enables you to access lower minimums on some investments, with a few companies letting you invest for as little as $50. The service is customizable to your preferences, so you can opt out of any startup you’d prefer not to support. It’s also completely free.
Vetting and due diligence
With such a high-risk asset class, you mustn’t throw your money at any old company. This is why Republic has a vetting and due diligence process, which ensures that you have the cream of the crop regarding your options as an investor. Companies applying to fundraise on Republic are carefully screened and evaluated based on their founders, product, traction, and mission.
Once passing this phase, a company is subject to the Republic’s due diligence process. This includes verifying information about the company and performing independent research to get to the core of the company’s business model, market, team, terms, and runway, among other factors.
Finally, the company is evaluated by Republic’s team of experts, which comprises individuals with experience working with companies like Merrill Lynch, Facebook, Google, and Blackrock, to name a few. From thousands of applications, less than 5% are accepted to Republic’s platform, meaning you can have peace of mind when investing with their platform.
Easy-to-use
If it wasn’t apparent from the registration process, it’s incredibly easy to register for an account on Republic. Beyond that, the user interface is straightforward, readable, and easy to navigate. Minimum investment amounts are pretty transparent and readily displayed, and you don’t have to go digging to get any information about the companies you’re evaluating or the Republic itself. With a robust knowledge network and FAQ series, you can learn much about equity investing on Republic’s website, even if you don’t use their investment platform.
One place for all your investing
Options Trading
- Get up to a $0.18 rebate
- No commission or per-contract fees
High-yield cash
- Earn 5.1% APY*
- No fees. No subscription required.
Bonds
- 6% Yield or more
- Explore thousands of bonds yielding 6%+
Who is Republic.com best for?
Non-accredited investors
If you’re not accredited as an investor, Republic makes it possible to invest in startups and real estate without meeting net worth or income requirements. Since that’s a vast majority of the population, it’s safe to say that Republic has broad appeal to investors looking to diversify their portfolios or align their values as consumers and investors with their investing strategies.
Investors with limited capital
Unlike other crowdfunding investment platforms, Republic has low minimums for most of its investments. This affordability means anyone who wants to invest in Republic can likely do so, with minimums starting at just $50 for some businesses. Republic doesn’t charge extra fees on top of your investments, another central point for budget-conscious investors.
Who shouldn’t use Republic.com?
People without a healthy appetite for risk
Investing in startups is one of the most high-risk types of investing you can do. As such, avoiding investing with Republic is a good idea if you can’t afford to lose money on your investments. Remember that you should only invest money that’s expendable to you, not money you need to pay back lenders or cover housing and utility costs. This is particularly true if you’re considering investing in blockchain technologies like cryptocurrencies on Republic, which are unregulated and can fluctuate in price dramatically. (See Elon Musk and Dogecoin for an illustration of this fact).
Accredited investors
While you can undoubtedly use Republic to invest as an accredited investor, you’ll generally find better companies and investments through a more traditional brokerage. That isn’t to say that Republic’s endorsements aren’t helpful if you’re interested in the companies they support on their platform. Still, a financial planner or wealth advisor will outclass a service like Republic if you're already an accredited investor.
Pros and cons
Pros
- Simple. One of the biggest draws to Republic compared to other options on the market is how intuitive it is to use. If you’ve shopped online and are comfortable navigating a website or your smartphone, you’ll have no problem investing with Republic.
- Vetted. The fact that Republic only lets 5% of applicants fundraise through its platform makes it less risky than blindly picking startups without first researching the companies. The due diligence process at Republic is multi-tiered to ensure that only businesses with a strategy, vision, and real leadership can fundraise through the platform.
- Low minimums and no fees. Compared to other crowdfunding investment platforms, Republic is super affordable. With no fees for account maintenance or on a per investment basis, you can keep more of the money you earn investing on Republic. Additionally, you can invest in some companies for as little as $50, which makes equity investing more accessible.
Cons
- Risky. As has been mentioned frequently, investing in startups is highly risky. Republic says this themselves during the account creation process. They reiterate it throughout their help materials and FAQs. This isn’t to say that you shouldn’t invest in startups; however, you need to do so responsibly and understand that there is a definite chance you will lose money doing so sometimes.
- Low liquidity. Since it’s not possible to cash out until a liquidity event, you may have to wait for a while before you can reap the rewards of your investment. Generally speaking, you can expect to be able to do this in at least five years; however, if an acquisition or change in leadership happens earlier, you may qualify to sell earlier.
- Limitations. If you’re not an accredited investor, you can’t put much money into your startup portfolio, even if you’d like to. Generally, your investments into equities as an individual investor with no accreditation are capped at $2,200 a year. However, depending on your income, you may qualify to invest at a higher limit. As such, other types of securities may be better if you have the money to do so.
Republic.com vs. competitors
Republic.com isn’t the only option to consider if you want to get into equity investing. Learn more about how Republic compares to SeedInvest and AngelList, below.
Feature | Republic | StartEngine | AngelList |
Fees | Completely free for investors | 3.5% per investment | 0.15% to 0.75% of the fund size |
Automated Investing | Yes | Yes | No |
Accredited or Non-Accredited Investors | Both | Both | Accredited only |
Minimum investment | $50 when using autopilot | $500 | $1,000 for deal-by-deal |
StartEngine
StartEngine, established in 2015 and based in California, is a leading equity crowdfunding platform renowned for its high investment volume. It offers a unique opportunity for individuals to invest in early-stage companies, democratizing access to investment opportunities. The platform's prominence escalated in 2020 with the addition of Kevin O’Leary, a well-known investor and 'Shark Tank' guest, as a strategic advisor following a successful $8 million funding round.
Dedicated to making investing accessible to all, StartEngine has aided over 750 startups in raising funds. Its significant growth was highlighted in 2020 when it was named California's 10th fastest-growing private company. Further expanding its influence, StartEngine acquired its competitor, SeedInvest, in 2022. It now boasts a community of over 1 million users and has raised more than $1.1 billion for startups. Uniquely, the platform is entirely funded by investors on the platform, reflecting the strong confidence in its vision to open up investment opportunities to a wider audience.
AngelList
AngelList is the most comprehensive online platform for startup investing; however, it’s exclusive to accredited investors. As such, you won’t be able to use AngelList if you don’t meet specific accreditation requirements. That being said, some companies that AngelList supports go through other funding rounds with Republic, so you may still be able to access some AngelList-endorsed businesses as non-accredited investors using Republic.
FAQs
How do you make money investing in startups?
Any investment in a company involves obtaining a Crowd SAFE, entitling you to a financial interest in the company. If the company goes public or is acquired at a price that’s higher than the price you bought in at, you turn a profit.
Is Republic.com secure?
Yes. As a financial institution, Republic has to follow standards for both data security and privacy, which it does to protect its users—whether they’re investors or are the businesses fundraising on its platform.
Do you get voting rights in a company when investing through Republic?
More often than not, no. This depends on the way that the company chooses to fundraise through Republic. However, even in cases where you might get voting rights, they’ll likely be quite diluted by other crowdfunding investors. They can be diluted even more if the company enters another round of funding.
One place for all your investing
Options Trading
- Get up to a $0.18 rebate
- No commission or per-contract fees
High-yield cash
- Earn 5.1% APY*
- No fees. No subscription required.
Bonds
- 6% Yield or more
- Explore thousands of bonds yielding 6%+
Is Republic.com legit?
Investing in equities and startups can be incredibly risky. Still, there’s a reward if you have the expendable income to get involved, even as a non-accredited investor. If you are interested in getting involved in this type of investing, Republic is a great platform to use. Its sleek user interface, ample support resources, and extensive knowledge base ensure that you’re learning as much as possible about the venue and type of investments you’re making before you ever hand over your bank information.
For more casual investors who are just starting, it may be a safer bet to stick with stocks, ETFs, and mutual funds if you need a reliable and consistent return on your investment. While the barrier to entry is undoubtedly relatively low from an expense perspective, with high risk and low liquidity, there are some serious cons to consider when investing with Republic.
Even so, Republic is an ideal platform for the curious or adventurous investors out there who want to be on the cutting edge and don’t believe that the wealthy should be the only ones able to decide the fate of a company or startup. With low minimums and an easy-to-understand, transparent user interface, the investing platform is a great way to get involved in venture capital work — even if you only want to toss $500 into the ring.
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Writer
Brent Ervin-Eickhoff is a Chicago-based writer, stage director, and filmmaker with a background in digital marketing and content creation. In addition to Joy Wallet, Brent has written for Complex, Volkswagen, HowlRound, Picture this Post, and Third Coast Review, among others. He currently serves as the Associate Director of Marketing for Content Creation at Court Theatre at the University of Chicago. Brent graduated from Ball State University with Academic Honors in Writing.
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