The Note - a digital token by Republic, a US company backed by Binance & Neo

[republic.sup]

Get in early.
Startups are changing the world around us. Now you can get involved too.

yep! 

[VincentoDoraimon]

What are GAAP Financials and when do I need them to be "Reviewed"?

[VeloCHARAPtor]

Who needs to have a Bad Actor Check run on them?

[MQAffi]

Is there a limit on how much I can raise?

[Miriam WolfStavish]

What fees does Republic charge?

[Larion Drake]

How much does it cost to raise on Republic?

[Jon Winston]

What kind of startups are accepted to raise?

Only U.S.-based companies are accepted (you have to be incorporated in the US)
Only companies that pass the criteria of our investment committee
https://republic.co/learn/issuers/who_can_raise

[Junior Hollow]

How do I know if my financials are GAAP compliant?

GAAP refers to "generally accepted accounting principles", an industry standard for reporting financial information. To fundraise using Regulation Crowdfunding, you must submit your financial statements in GAAP format.

If they're formatted like this example, meaning many of the same items and information (ex. issuance of stock) are covered in the same way, they're probably GAAP. That said, it's not just a question of formatting, and this isn't financial advice.

If you're still not sure, it's best to check with a CPA. We recommend using Kristine Rasmussen from Assure (krasmussen@assure.co). Most startups that have raised on Republic work with Kristine.

Remember, if you want the ability to raise over $107,000, you must have your GAAP finances reviewed by an independent CPA.

[Jenny Briane White]

What are the key components of preparing for my campaign?

The Form C, you should use iDisclose to form the basis for it.
Once you finish in iDIsclose, an attorney can review your draft for $1,500 and help you file it with the documents below, or you can use your own attorney.
Finances, ensure that your financial statements, for the last 2 fiscal years are GAAP compliant. If you need assistance, we recommend using Kristine Rasmussen from Assure (krasmussen@assure.co) to prepare them in GAAP.
Once that is complete, please have your financial statements reviewed by a 3rd party CPA. We can introduce you to once if need be - note this is only for campaigns raising over $107,000.
Deal Page, you should start working on your offering page, remember we have templates on your onboarding page.
Video & Transcript, If you are making or using a video, remember to write a transcript for it.

[Inkassator]

Who needs to have a Bad Actor Check run on them?

Anyone in your company that falls into one or more of these categories must provide Republic their full name legal name, SSN/TIN, phone-number, address and DOB:

Officer (anyone with "officer" in their title);
Director (anyone on your board, but not informal advisors); and/or
Any person or entity that holds 20% or more of the company.

[Heddion]

How does Flat Fee Attorney pricing work?

 By being affiliated with Republic, you get a special discount on Form C reviews through our independent attorneys we have partnered. How the flat fee is determined is explained below.

Number of Prior Issuances of Securities to Investors (Equity, Debt, SAFE, SAFT, etc.)

[Hariton Vladimirovich]

What is the typical campaign duration?

Republic campaigns usually last 30-60 days. If you need to run a campaign for a longer time, please let us know.  team@republic.co

[Fenomenon]

Can companies based outside the US raise money on Republic?

No, only United States-based companies can raise via equity crowdfunding per US law.

[DonyTramp]

What fees does Republic charge?

Investing on Republic is free for Investors.

Companies pay only if they successfully reach their funding goal: 6% of the total funds raised in cash, and 2% as a Crowd Safe.

Companies raising on Republic may also use the proceeds of their successful
financing to pay for the escrow agent and other transaction-related fees. Related: how much does it cost to launch a campaign?

Example using a Crowd Safe: Equity Startup, Inc. raises $100,000 at $10M valuation and hits its funding goal, effectively selling an equivalent of 1% of its equity. Republic takes $6,000 and Crowd Safe with a $2,000 face value (0.02% in an equity equivalent).

Example using a Token DPA: Blockchain Startup, Inc. raises $100,000 
and hits its funding goal, effectively selling $100,000 plus interest in tokens. Republic takes $6,000 and Token DPA with a $2,000 face value (later equivalent for cash or tokens).

Example using a Revenue Share: Revenue Startup, Inc. raises $100,000  and hits its funding goal, effectively selling $100,000 in debt with a revenue right. Republic takes $6,000 and a revenue right with a $2,000 face value (which will entitle Republic to payments as if Republic had put $2,000 into the offering).

[DivinityEgo]

How much does it cost to raise on Republic?

Raising via investment crowdfunding on Republic is not a heavy lift, contrary to what you might expect.

Please note: these fees are not paid to Republic, but are objective costs associated with preparing the documents and running a compliant campaign. Republic only takes commission on successful campaigns.



Form C: $1,500
The SEC requires fundraising companies to provide certain information on Form C.  This disclosure informs prospective investors and is provided to the SEC.  iDisclose, a third party service provider, helps you complete a Form C in about 9 hours when it would normally take over 4 weeks manually. We also have inhouse staff to help you along the way. You are required to pay this cost up-front when you start using the service.
Escrow: Approximately $1,500
All campaigns must have an escrow agent.  The costs of escrow vary depending on the number of investors you end up with and is not paid until after the campaign is over, directly out of the proceeds of the escrow account.
Baseline cost total: $3,000



Other potential costs:

Financials: $1,000–$4,000
If your financials are not complex, you have been diligent with bookkeeping and you are organized expect this cost to be in the middle to lower range. If you already have GAAP converted financials your costs will be lower. If you have a licensed CPA on the team your costs can be $0. If you use professionals expect the bill to be sent once services are complete.
Video: $0
Spend as little or as much as you want. It’s up to you. Already have a video? Chances are you can use that for your campaign.
Attorney review: $0-$3,500
If you have an in-house counsel or your own representation, you can use their services. If you need representation, our partners offer a flat fee structure for Form C compliance and legal review. In addition they will file your Form C, all amendments during the campaign (if applicable) and your post campaign Form C-U declaring the campaign end. Finally, they will help you setup and review your investor agreement (i.e., the security you are selling to investors - most likely our Crowd Safe). This bill is typically paid upfront.
Marketing budget: $0
We highly recommend, but do not require, you to spend money on marketing, social media or otherwise. There might be a live event you want to attend, you might decide to have a party. These costs are optional and you decide on the total costs, but can have major impact on how much you raise.
Credit Card: ~3.5%
If you would like your investors to have the convenience of using a credit or debit card for investment a ~3.5% fee is charged by the service provider. For example if an investor uses their card for a $100 investment your fee would be $3.50. This would only apply to investments made with a credit or debit card, and only if the campaign is successful. Please note, currently Token DPA offerings cannot utilize credit card processing.

[CryptoAliance]

Why we love mission-driven startups
Because we believe the greatest companies have a mission.

This isn't just fanciful ideology. Having a mission helps founders see the big picture and set big goals, persevere through tough times, and lead and inspire their team along the way.

[republic.sup]

Why we love mission-driven startups
Because we believe the greatest companies have a mission.

This isn't just fanciful ideology. Having a mission helps founders see the big picture and set big goals, persevere through tough times, and lead and inspire their team along the way.

Yes it is true. thank you for your opinion!

[republic.sup]

Startups are here to change the world, but they need money to grow. Many startups’ success depends on their ability to get funded.

Silicon Valley is an amazing place that has fostered and funded startups for decades, but its homogeneity has become increasingly apparent in recent years.

Fortunately, Title III opened the door for those previously excluded from startup investing to fund the companies they believe in. This makes room for more entrepreneurs — because in a world where anyone can fund anyone, more ideas get off the ground.

Tnx for your opinion!

[republic.sup]

In May 2016, the United States Securities and Exchange Commission (SEC) enacted Title III of the JOBS Act, allowing a majority of the US population to invest in startups for the very first time. But the complicated legal requirements called for a founder- and investor-friendly platform to make startup investing truly accessible.

That’s why we built Republic. We’re SEC-registered and FINRA-licensed, and if you’re at all interested in startups, you’ve heard of our past work. Republic is part of a family of startup platforms together with AngelList and Product Hunt — one of the most trusted online startup ecosystems in the world.

We launched our equity investing platform in 2016, and didn’t stop there. Just over a year ago, we created Republic Crypto, providing the first full stack fundraising solution in the crypto space. This year we are excited to introduce Republic Labs, an affiliated investment advisory service.

We have garnered a reputation as an industry leader in the regulated crowdfunding space and continue to innovate and iterate toward our mission to democratize startup fundraising and investing.

Yep! Invest as little as $10 in private startups and earn a return if the startup succeeds!

[republic.sup]

What fees does Republic charge?

Investing on Republic is free for Investors.

Companies pay only if they successfully reach their funding goal: 6% of the total funds raised in cash, and 2% as a Crowd Safe.

Companies raising on Republic may also use the proceeds of their successful
financing to pay for the escrow agent and other transaction-related fees. Related: how much does it cost to launch a campaign?

Example using a Crowd Safe: Equity Startup, Inc. raises $100,000 at $10M valuation and hits its funding goal, effectively selling an equivalent of 1% of its equity. Republic takes $6,000 and Crowd Safe with a $2,000 face value (0.02% in an equity equivalent).

Example using a Token DPA: Blockchain Startup, Inc. raises $100,000 
and hits its funding goal, effectively selling $100,000 plus interest in tokens. Republic takes $6,000 and Token DPA with a $2,000 face value (later equivalent for cash or tokens).

Example using a Revenue Share: Revenue Startup, Inc. raises $100,000  and hits its funding goal, effectively selling $100,000 in debt with a revenue right. Republic takes $6,000 and a revenue right with a $2,000 face value (which will entitle Republic to payments as if Republic had put $2,000 into the offering).

Yes right!