Republic.co Review – Crowdfunded Investments
- What is Republic.co?
- Opening an account on Republic
- How much does Republic.co cost?
- Republic.co features
- Who is Republic.co best for?
- Who shouldn’t use Republic.co?
- Pros & cons
- Republic.co vs. competitors
- The bottom line
What is Republic.co?
Opening an account on Republic
How much does Republic.co cost?
Vetting and due diligence
Who is Republic.co best for?
Investors with limited capital
Who shouldn’t use Republic.co?
People without a healthy appetite for risk
Pros & cons
- 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 doing a lot of research into 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’re able to keep more of the money you earn investing on Republic. Additionally, you can invest in some companies for as little as $20, which goes a long way in making equity investing more accessible.
- 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 some of the time.
- 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 a ton of 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, although depending on your income you may qualify to invest at a higher limit. As such, there are other types of securities that may be a better choice to invest in if you have the money to do so.
Republic.co vs. competitors
|Fees||Completely free for investors||2% per investment||2% management, 20% carry|
|Accredited or Non-Accredited Investors||Both||Both||Accredited Only|
|Minimum to open an account||$10, most companies have minimum investment amount of $20-$250||$1,000||$1,000 for deal-by-deal|
The bottom line
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