Equity Crowdfunding Platform Republic Announces $36 Million Round
Equity crowdfunding platform Republic has just announced that it’s raised $36 million in its latest funding round. The Series A was led by Galaxy Interactive while Tribe Capital, Motley Fool Ventures, and Broadhaven Ventures also participated. With the new round, Republic has now raised more than $70 million since its founding in 2016.
Republic’s platform allows both accredited and retail customers to invest in startups, cryptocurrency, real estate, and videos. On the site, investors can browse projects and companies along with how much each listing is trying to raise, what venture capital firms are also backing them, and more information about the company’s pitch. While each opportunity has its own minimum investment requirement, these start as low as $10 — although the average is between $25 and $250. Akin to regular crowdfunding sites, startups may even offer perks or other benefits to investors at certain tiers. Meanwhile, the platform also includes an Autopilot feature, which will automatically build a portfolio for investors based on certain criteria.
According to a blog post by the company, the latest funding comes as Republic has seen impressive growth over the past year. They note that, in January and February of 2020, the platform enabled 22 deals totaling $4.3 million, compared to $17.45 million across 48 deals in the first two months of 2021. Meanwhile, the firm also recently announced acquisitions of three companies: Compound, NextSeed, and Fig.
Commenting on how the Series A will impact Republic and its mission, CEO Kendrick Nguyen said in a statement, “We have entered a new era of investing, one in which all stakeholders of a business can become shareholders. The support of marquee institutional investors in Republic’s funding round is indicative of the vast potential of our mission: to enable investors everywhere to align their passion with profit.” Elsewhere, Galaxy Interactive partner Richard Kim said of the company’s investment in Republic, “We are at the early stages of a multi-decade super-cycle of retail empowerment. Republic is at the forefront of this trend, and there is no team that better understands the intricate web of consumer tech, finance, and regulation needed to bring real innovation to the private investment space. We are thrilled to partner with Ken and team, and look forward to the amazing opportunities they will enable in the years to come.”
Although the popularity of equity crowdfunding may have grown at a slower pace than some would have predicted, deals like this suggest that the concept is primed for a larger breakout. Not only will Republic’s newfound funds allow them to reach new customers but their recent acquisitions will surely help their platform become a destination for investors of different stripes. What’s more, Republic’s success could also spell good news for FinTechs who want to explore the possibilities of equity crowdfunding in addition to traditional VC raises. Because of this, expect to hear a lot more about Republic throughout 2021 and onward.