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The times are ch-ch-ch-changin’. (In the world of investing, that is.) If you’ve been following the news, you saw what happened with Gamestop and Reddit. Individual investors showed their collective power, and they’re here to stay.
If you’ve been watching everything unfold and scratching your head a bit, you’re not alone. A lot of people are waking up and wondering, “Wait, why didn’t I learn any of THIS in school?”
Let’s fix that
We’re all about demystifying investing, so this week we’re talking about…accreditation. (Don’t let the jargon fool you; it gets interesting)
In its simplest form, an accredited investor is an individual who either makes $200k/year or has a net worth of $1m+ (AKA a small percentage of the population). Anyone who doesn’t meet those qualifications is simply unaccredited.
• Unaccredited investors can invest in things like the public stock market, bonds, and certain regulated private deals.
• Accredited investors can invest in anything, with way fewer rules. They have access to deals that can raise a lot more money (think: billions) with fewer headaches.
Why is the system set up this way? It dates back to the Securities Act of 1933, which was put in place after the stock market crash that brought us the Great Depression. More recently, it’s been criticized for the strict restrictions that limit who can invest and how much companies can raise.
• Pro: Accredited investors have access to more investment opportunities, increased diversification, and higher potential returns.
• Con: Investing is risky and accredited investors incur more risk by investing more money in deals that have fewer regulations and protections. (Remember Theranos?)
• Takeaway: Limiting opportunities to certain people based on how much money they have or don’t have doesn’t align with our values.
At Republic, we believe that every investor should have access to the same investment opportunities. That’s why we’ve been providing our recommendations to the SEC (the people who make the rules) to expand who has access to accredited deals and create more favorable rules for unaccredited deals—like raising the limit to $5M. No, really—we’re cited over 20 times in the SEC’s Final Rules release.
Investing will always be risky, but we believe everyone should be allowed access to the same opportunities and make investment decisions themselves.
Trending live deals
We work on making as many investments as possible accessible to as many people as possible. Here are deals open to all investors that have gained the most traction in the last week:
• Intellivision Amico is a new video game system that’s redefining entertainment with family and friends. With over $25 million in pre-sales, they’ve got partnerships with MLB, Hot Wheels, Sesame Street, and more. They’ve raised over $8 million on our platform so far. Minimum investment of $1,000.
• Oracle Health is a tiny implantable heart monitor that uses telemedicine and AI. They’re part of Johnson+Johnson’s Innovation Lab and the team is made up of cardiologists, scientists, engineers, and entrepreneurs. Minimum investment of $250.
• Nectar Tulum is a luxury condo development that connects nature, vacation and art. They’re purchasing four 2-bedroom units and some investment perks even get you free stays. Minimum investment of $100.
• Cannabox is redefining the online shopping experience for cannabis accessories. They’ve already done $11.5M+ in revenue while tapping into a $47B projected cannabis market by 2025. Minimum investment of $100.
We love our community, so we created a place for our investors to connect. If you’ve been looking for a group of people who are just as excited about crypto, startups, and real estate as you—join us in the new Republic Investor Discord Group.
• SheWorx Special Event: Randi Zuckerberg of Zuckerberg Media and creator of FB Live will moderate a conversation with Arlan Hamilton, of Backstage Capital on February 18 at 3 pm ET. They’ll be talking about brand positioning and closing the investment gap for minority founders. RSVP here.
• Instagram Live: Champions for Change is an interview series with top athlete-investors. This week we’re talking to NFL/NBA agent Nicole Lynn and Super Bowl-winning Coach Lori Locuston about strategizing and building a diversified portfolio. Feb 18th at 6 pm ET. RSVP here or by following us @joinrepublic.
• We messed up: In our Black History Month newsletter we left out one of our Black-founded companies, Relay, a new and better way for truck drivers to work. They’re targeting the $1T trucking industry with an on-demand, fully flexible driver workforce. Minimum investment of $100. Invest here.
• Shark sighting: Tyla-Simone Crayton, the 17-year old entrepreneur, who founded Sienna Sauce, will be featured on Shark Tank this Friday, 2/19. Tune in to see if she gets a bite.
• Investing Playbook: The free Confident Investor Playbook is here with 10 rules for making your first startup investment with as little as $100. Grab it here.
Launched this week
Transforming the labor marketplace for supply chain quality inspections
Fast-growing specialty cafe company scaling into a national brand
100% all-natural cherry juice that fights inflammation
The DNA-based Digital Twin to predict and prevent risks on 16,000+ diseases
Revolutionizing the global construction industry using blockchain technology