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Republic Framework
Following the Republic.com framework for how they make due diligence decisions: Investment Terms — What are the terms of this round? Are there any commitments or notable investors? How has the company financed itself to date, and how much runway does it have left? Market — How big is the market the company seeks to capture? In what direction is that market heading? Does the go-to-market make sense? Product — What is the product’s core use case? How is the UX? How was the product developed? What is in the product roadmap, and how will that drive rapid adoption, stickiness, and virality? Angle — What is the company’s core competitive advantage? What discontinuity in the market is the company leveraging? How will this advantage endure through expected changes in the market? Crowdfundability — Does the company have a consumer angle? Does it have the community, user base, and marketing budget necessary to drive a successful campaign? Is the company’s mission aligned with Republic’s? Traction and Business Model — How does or how will the company monetize? What sort of market validation and growth (users, revenue, retention, etc.) has the company seen since launch? Team — Does the team have compelling and complementary experience that indicate they will be able to deliver on their goals? Are the founders serial entrepreneurs, ex-corporate MBAs, or deep industry experts? Are they hustlers with no ego?
Crowdfunding Law
I. Introduction to Republic and the JOBS Act Allows anyone to invest in private markets through Republic's ecosystem Investment is in exchange for a financial stake in a company through a Crowd SAFE (Simple Agreement for Future Equity) II. Republic's fees Republic collects 6% of the total amount raised and 2% of the securities offered in successful financing Issuers may use proceeds to pay for offering-related fees and expenditures Republic takes a success-based commission at the end of a campaign (1.5-2.25% of capital raised) III. Company information and reporting requirements Includes basic financial information (balance sheet, income statement, cash flow) and risk disclosures Investor names not included Must file annual reports with the SEC no later than 120 days after the end of each fiscal year Required to continue filing annual reports until certain conditions are met (e.g. IPO, fewer than 300 shareholders, assets under $10 million, repurchase of securities, liquidation/dissolution)
Republic Framework
Following the Republic.com framework for how they make due diligence decisions:
Investment Terms — What are the terms of this round? Are there any commitments or notable investors? How has the company financed itself to date, and how much runway does it have left?
Market — How big is the market the company seeks to capture? In what direction is that market heading? Does the go-to-market make sense?
Product — What is the product’s core use case? How is the UX? How was the product developed? What is in the product roadmap, and how will that drive rapid adoption, stickiness, and virality?
Angle — What is the company’s core competitive advantage? What discontinuity in the market is the company leveraging? How will this advantage endure through expected changes in the market?
Crowdfundability — Does the company have a consumer angle? Does it have the community, user base, and marketing budget necessary to drive a successful campaign? Is the company’s mission aligned with Republic’s?
Traction and Business Model — How does or how will the company monetize? What sort of market validation and growth (users, revenue, retention, etc.) has the company seen since launch?
Team — Does the team have compelling and complementary experience that indicate they will be able to deliver on their goals? Are the founders serial entrepreneurs, ex-corporate MBAs, or deep industry experts? Are they hustlers with no ego?
Republic FrameworkFollowing the Republic.com framework for how they make due diligence decisions:
Investment Terms — What are the terms of this round? Are there any commitments or notable investors? How has the company financed itself to date, and how much runway does it have left?
Market — How big is the market the company seeks to capture? In what direction is that market heading? Does the go-to-market make sense?
Product — What is the product’s core use case? How is the UX? How was the product developed? What is in the product roadmap, and how will that drive rapid adoption, stickiness, and virality?
Angle — What is the company’s core competitive advantage? What discontinuity in the market is the company leveraging? How will this advantage endure through expected changes in the market?
Crowdfundability — Does the company have a consumer angle? Does it have the community, user base, and marketing budget necessary to drive a successful campaign? Is the company’s mission aligned with Republic’s?
Traction and Business Model — How does or how will the company monetize? What sort of market validation and growth (users, revenue, retention, etc.) has the company seen since launch?
Team — Does the team have compelling and complementary experience that indicate they will be able to deliver on their goals? Are the founders serial entrepreneurs, ex-corporate MBAs, or deep industry experts? Are they hustlers with no ego?
Crowdfunding LawI. Introduction to Republic and the JOBS Act
Allows anyone to invest in private markets through Republic's ecosystem
Investment is in exchange for a financial stake in a company through a Crowd SAFE (Simple Agreement for Future Equity)
II. Republic's fees
Republic collects 6% of the total amount raised and 2% of the securities offered in successful financing
Issuers may use proceeds to pay for offering-related fees and expenditures
Republic takes a success-based commission at the end of a campaign (1.5-2.25% of capital raised)
III. Company information and reporting requirements
Includes basic financial information (balance sheet, income statement, cash flow) and risk disclosures
Investor names not included
Must file annual reports with the SEC no later than 120 days after the end of each fiscal year
Required to continue filing annual reports until certain conditions are met (e.g. IPO, fewer than 300 shareholders, assets under $10 million, repurchase of securities, liquidation/dissolution)
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