If you’re in the startup space, you’ve probably heard the term “angel investor.” If you’re unfamiliar, an angel investor is an investor who provides capital to startup founders in exchange for convertible debt or ownership equity.
A lot of angel investors have experience in the startup world and have usually founded companies themselves. When they part ways with their company, usually through acquisition or simply handing the reigns to someone else, they want to give back in some way. Being an angel investor allows you to help early-stage startups while also (possibly) making a pretty nice return.
Unfortunately, average investors didn’t have access to those early-stage startups.
Enter Republic, the easiest way to invest in private startups.
Republic lets you invest in companies for as little as $10 from their website. Signing up is free and there are no fees when you actually make an investment.
How does it work?
Most startups offer something called Crowd SAFE, which is a contract between investors and the company looking to raise capital. If the company ends up going through an Initial Public Offering (IPO), your investment is converted into equity in the company.
Crowd SAFE is actually something that was created by
SAFE stands for Simple Agreement for Future Equity.
As of today, the company has about 17 startups raising funding. However, there have been dozens funded in the past who have well exceeded their goals.
The companies range from gender-free clothing stores to blockchain solutions.
Although the range of listed companies is wide, I wish there were more companies to choose from. This could be a fantastic tool for average-to-experienced investors if they find a way to expand their selection.
Republic allows companies to include videos, minimum investment requirements, a Q&A forum for potential investors, a FAQ page, and an About page.
On each profile page, it shows how many days you have left to invest in the company and how many current investors there are. You’re also able to access their SEC filings and do an entire audit of the company’s financials.
Republic is a unique website that’s giving people access to some really neat startups. The UI/UX is really easy for new investors to navigate which makes you want to come back for more.
The company also has a partnership with Product Hunt, which helps them attract new startups that are ready for funding.
As of now, I’d like to see more companies on Republic. Perhaps even just a wider variety of companies would suffice. Within the next three to four years, I believe that will happen, especially with the partnership with Product Hunt.