When we hear stories about the most impressive profits in angel investing, we often come across remarkable tales like that of Oren Michels and Mike Walsh, who turned a $5,000 investment in Uber's seed round into a staggering $25 million. Of course, 5,000x returns from a seed investment like Uber are pretty rare.
In fact, going for the highest reward also comes with the greatest risk. Take a look at the chart below. It shows the likelihood of a successful exit by investment round based on a study from DunRobin Ventures.
You can see that a Series A investment is nearly six times more likely to have a successful exit than a Seed round. A Series B is three times as likely as a Series A. Go to Series C or later and the probability of a successful exit goes north of 80%.
As you get into later rounds, the competition to invest gets even tougher. You'll often see big-name investors who backed the company in early rounds upping their stakes and you'll get new VCs taking a stake because they want to get in on the action.
So how do you solve the challenge of gaining access?
Republic Capital and Later Stage Deals
Within the Republic ecosystem, we have a special branch called Republic Capital. Their specialty is working with institutional investors, family offices, and high-net-worth individuals to raise funds. This approach has allowed our team to make significant investments in later stage markets alongside notable VCs like Andreessen Horowitz, Sequoia, Lightspeed, Kleiner Perkins, Tiger Global, and more.
Let's look at a few of Republic Capital's success stories:
Carta
Republic Capital's journey with Carta, a leader in financial tracking for startups, began in 2019. Since then, they've made multiple rounds of capital investments into the company with a total stake of $16.7 million. As of November 2022, Carta's valuation is well beyond Unicorn status at an impressive $8.5 billion.
Robinhood
Robinhood is best known as the platform that revolutionized stock trading for retail investors. Between 2020 and 2021, Republic Capital deployed approximately $37 million into pre-IPO primary and secondary offerings of Robinhood stock. By early 2022, Republic Capital liquidated its entire position, reaping significant gains.
Dapper Labs
Dapper Labs is revolutionizing the integration of play and blockchain technology. In 2020, Republic Capital invested $490,000 into Dapper Labs' FLOW token. After 31 months, Republic Capital liquidated its position, delivering a remarkable ~88X net return for investors.
Making Later Stage Investments Even More Accessible
While these deals have traditionally required substantial investments ranging from $100,000 to several hundred thousand dollars, Republic is about to introduce a unique opportunity for you to gain similar access with a much smaller stake.
Republic Deal Room provides access for investors in select deals with a minimum investment starting as low as $1,000, $2,000, $5,000, or $10,000. This approach allows you to participate in the growth of transformative companies without requiring huge capital commitments.
Highlights are derived, and based entirely upon the Issuer’s representations.
Prior results do not guarantee future success. Investments in private companies are particularly risky and may result in total loss of invested capital.
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