Startups that raise on Republic set the deal terms at which they sell their securities. Here are some definitions and explanations to help with your next investment.
Minimum funding goal The minimum amount the startup needs to raise. If the startup doesn’t reach the minimum funding goal before the campaign ends, their campaign is considered unsuccessful, and all investments are refunded to investors.
Maximum funding goal The maximum amount the startup is willing to raise. When this amount is reached, the startup will stop accepting investments.
Each startup campaign will run for a set amount of time, regardless of whether or not the startup reaches its minimum or maximum funding goal.
Each campaign has:
A start and an end date.
These dates are set in advance and do not change, and investors can continue to invest until the listed end date, even if that startup has reached its funding goal.
An option to close early or extend.
A startup has this option if they reach their minimum funding goal before the end date. Startups have the ability to extend or shorten their campaigns under certain conditions.
An option to do a rolling close.
If a startup reaches its minimum funding goal before the end date it may elect to keep the campaign going and receive the funds closed to date. This must be properly disclosed to investors.
A cancellation deadline.
This starts 48 hours before a campaign end date (or in the event of a rolling close, a date announced by the company after the deal is met. Read more about rolling closes). Any investments made after this deadline are past final and will not be eligible for a refund.
Each company sets the minimum investment size they will accept during a campaign. Republic allows companies to start as low as $10, but the typical minimum investment amount ranges between $25–$250. Companies can also choose to limit the maximum investment amount to allow more investors to participate.
The two main securities terms are the Crowd SAFE and Token DPA. There may be more securities, so it’s important to check each campaign page to learn more.
When you invest on Republic, you typically receive a Crowd SAFE security.
The Crowd SAFE is not the same as equity, rather it is an agreement that may provide investors with equity upon certain future events. Every company’s Crowd SAFE's terms are different, but they typically include two main parameters—the valuation cap and discount—which determine how the specific Crowd SAFE terms convert to equity.
The Token DPA is a debt instrument issued by a crypto company. The Token DPA states that the company can repay the debt in its tokens or in cash with interest.
If a company makes a change to the deal terms or other material offering information while the campaign is running, they are required to notify investors reconfirm their investment. Investors will have 5 business days after the confirmation request is sent to respond.
If they do not reconfirm within 5 business days, their investment will be cancelled and refunded. Any future funding towards the campaign will be considered a new investment.