Crowdfunding is not new, but until recently, “crowdfunding” in the U.S. meant buying a product or donating money. Separately, only wealthy people were allowed to invest in start-ups and early stage private companies. Now, you can be an angel investor in these companies under the 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. If you see a company you that looks promising on Republic, you can invest and become an owner. If the company does well, your ownership interest increases in value. If the company does poorly, your ownership interest likely will be worth nothing.
Because of the risks involved with this type of investing, federal law limits how much you can invest. The law also requires that before you invest on Republic, you first understand the risks of investing in private companies (especially startups). You should also become familiar with the general dos and don’ts of early stage investment. At the very least, please review this Investor Information in full and we encourage you to consult additional resources in your discretion. The SEC has issued an Investor Bulletin that is quite helpful to gaining an initial understanding: SEC Investor Bulletin: Crowdfunding (February 16, 2016)
Next: Can I invest?Republic is an investment crowdfunding platform through which private U.S. companies can seek investments from the general public under the provisions of Title III of the Jumpstart Our Business Startups Act of 2012 (known as the “JOBS Act”). Until May 16, 2016, essentially only the wealthiest 3% could invest directly in private startups. Everyone else was relegated to buying a product or donating money to support a company, but could not invest and become one of its owners. Now thanks to Title III of the JOBS Act, private companies can access a far larger group of potential investors.
Our mission is to make this new financing avenue as simple and transparent as possible for companies and investors alike.
Next: Why Crowdfunding
Republic does not verify information provided by companies on this Portal and makes no assurance as to the completeness or accuracy of any such information. Additional information about companies fundraising on the Portal can be found by searching the EDGAR database.