Equity crowdfunding is taking the world by storm, the company leading the charge is Republic.co. Here is what you need to know!
The history of equity crowdfunding
Crowdfunding has been around for a while, but until recently, “crowdfunding” in the U.S. meant buying a product or donating money. Think Kickstarter and Indiegogo campaigns. You can help companies by making purchases at different tiers. For instance donating $20 may get you a free t-shirt or hat.
Separately, only wealthy people were allowed to invest in start-ups and early stage private companies. Imagine if you could own 1% of Google or Facebook right now. Well, if you want to be an angel investor in a company you can.
Thanks to provisions of Title III of the Jumpstart Our Business Startups Act of 2012 (known as the “JOBS Act”) and Regulation Crowdfunding. Your investment will be limited in proportion to your wealth or income and must be made online through a funding portal like Republic that is registered with the US Securities and Exchange Commission and a member of the Financial Industry Regulatory Authority.
Who can invest in equity crowdfunding?
Anyone over the age of 18 can invest on Republic. There are no net worth or income minimums, but U.S. law does limit how much you can invest.
Now you yourself can be an owner. And it’s easy. If you see a company you that looks promising on Republic, simply invest and receive your ownership stake. If the company does well, your ownership interest increases in value. If the company does poorly, your ownership will be devalued.
The law also requires that before you invest on Republic, you first understand the risks of investing in private companies (especially startups). Republic requires you pass a quick online quiz so they can verify you know the risk. Also, you don’t even need to be a U.S. citizen to invest. Learn more »
Who can raise equity crowdfunding money?
Companies incorporated in the United States are eligible to raise money on Republic. Republic looks for companies that are impact-driven, have a diverse team, and leverage technology to accomplish their mission. Click here to see a full list of companies.
What types of companies are raising money right now?
“It is time to shift the focus from mass production to food production by the masses, and reinvent the small farm. Farm from a Box is an innovative off-grid toolkit for sustainable, tech-powered agriculture. It is the easiest and most efficient way to start and maintain a 2-acre planted farm.”
“We use customizable radio-controlled cars to teach kids about Science, Technology, Engineering and Math (STEM). Everybody knows boys love playing with cars but somehow we forgot that girls do too.
The White House has made STEM a national priority yet girls who are excited about science when they are younger start giving up on it as early as middle school.”
“A women’s health solutions company with a pioneering anti-Zika apparel product.”
“The ESPN for entrepreneurship”