Small businesses now have the opportunity to raise as much capital as $1 million (£75.60 million) from the public. They can also solicit advice from high-profile entrepreneurs like Naval Ravikant, co-founder and CEO of AngelList, and Jason Calacanis, founder of Inside.com, and an early investor in Uber and Thumbtack.
Republic, an equity crowdfunding platform, announced its launch today. The company invites non-accredited investors (i.e., those with limited investment experience, who may earn a salary of less than $100,000 (£75,648.97) annually,) to give capital to dozens of startups for an equity stake. So far, Republic has enticed 12 companies onto its platform, which it vets based on factors like how promising it views the business model and broader social mission to be. A company must also be willing to disclose its revenue to the public.
Kendrick Nguyen, Republic’s co-founder and CEO, previously served as the head of legal counsel at AngelList, another crowdfunding website that targets accredited, or high net-worth investors. He explains that the idea behind Republic has long been in the works. In April, Nguyen applied for FINRA and SEC approval, and was approved by end of May.