🔥
Deals closing soon!
2 deals closing in  
21h 0m 59s
 left to invest in
Logo of Robert Rodriguez's Brass Knuckle Films
Robert Rodriguez's Brass Knuckle Films
Logo of Pelican Air Services
Pelican Air Services
View closing soon
 
Republic Republic Republic
  • Log in
Oops! We couldn’t find any results...
Can’t find a deal? Try advanced search.
Is something missing? Add your suggestion here.
Primary market Live deals Secondary market Buy and sell Republic Note Own a piece of Republic's upside Investor Network Membership Receive exclusive discounts and benefits
Republic Venture Opportunities for accredited investors
Republic Capital Multi-stage venture firm Republic Digital Crypto hedge fund
Wallet Manage your digital assets Mobile app Available on iOS or Android Learning center Explore investor resources FAQ Get your questions answered
Capital fundraising Raise on Republic Tokenized assets Design, launch, manage tokenized assets Sharedrops Gift equity as a reward
Advisory Access veteran web3 advisors Infrastructure Stake your digital assets Tokenization Deploy your assets on-chain Asset management Explore digital asset funds
Republic Capital In-house Venture Capital fund Broker dealer Regulated capital services
Log in Sign up

Republic Republic Republic
Oops! We couldn’t find any results...
Can’t find a deal? Try advanced search.
Is something missing? Add your suggestion here.
  • US
  • Log in
  • Sign up
All investors
Primary market Live deals Secondary market Buy and sell Republic Note Own a piece of Republic's upside Investor Network Membership Receive exclusive discounts and benefits
Accredited only
Republic Venture Opportunities for accredited investors
Institutional
Republic Capital Multi-stage venture firm Republic Digital Crypto hedge fund
More
Wallet Manage your digital assets Mobile app Available on iOS or Android Learning center Explore investor resources FAQ Get your questions answered
Spotlight deal
Hamilton Lane Private Infrastructure Fund
Hamilton Lane Private Infrastructure Fund
Get unique access to the full spectrum of private markets with Hamilton Lane
Growth capital solutions
Capital fundraising Raise on Republic Tokenized assets Design, launch, manage tokenized assets
Sharedrops Gift equity as a reward
Web3 services
Advisory Access veteran web3 advisors Infrastructure Stake your digital assets Tokenization Deploy your assets on-chain Asset management Explore digital asset funds
Institutional services
Republic Capital In-house Venture Capital fund
Broker dealer Regulated capital services
Journal

Investor education

· April 30, 2020

The importance of startup diversification

In this article we cover how Republic makes it easy to create a diversified startup portfolio.

  • Liked
    Like
    6
  • Comments (2)

When you invest early in startups, figuring out which ones will succeed can be tricky. Even professional venture capitalists (VCs) often miss amazing deals and invest in unsuccessful ventures. 

For example, VC Jeremy Levine famously passed on investing in Facebook in 2004, telling co-founder Eduardo Saverin, “Kid, haven’t you heard of Friendster? Move on. It’s over!” 

Ouch, that one had to hurt... But venture capitalists have to be very selective in the deals they invest in, that’s their job. In fact, the average partner at a VC firm only invests in 1-2 deals per year, so great opportunities will inevitably slip through the cracks. 

However, as individual startup investors, we don’t have the same limitations most VCs do. We can invest small amounts of money in a very large number of deals, which may increase our chances of hitting a big winner. 

Recent research by AngelList supports the idea of investing in a large number of deals. Here’s an excerpt from their research, which examined the results of thousands of startup deals.

“Conventional investing wisdom tells us that VCs should pass on most deals they see. But our research indicates otherwise: At the seed stage, investors would increase their expected return by broadly indexing into every credible deal.

That’s one of the results we found when we analyzed the thousands of deals syndicated by AngelList over the past seven years to test assumptions about the nature of venture capital returns. We’re presenting these findings in a first-of-its-kind report out today, Startup Growth and Venture Returns.”

Easy diversification with Republic’s Autopilot

Republic makes building a large startup portfolio simple with Autopilot. Autopilot lets you automatically invest as little as $20 in every deal that meets the following objective criteria. Only startups that have:

  • Raised at least $150K 
  • From over 100 investors
  • And reached at least 2x their minimum fundraising goal

Autopilot is free, customizable, and you can opt out of any deals you don’t like. If you invest $20 per deal, a year from now you could have a portfolio of 100 startups!

Think of Autopilot as similar to investing in a broad index of stocks, like the S&P 500, instead of trying to pick individual winners. Autopilot gives investors broad exposure to companies that raise money on Republic, and while it won’t eliminate the high risk nature of startup investing, diversification is a great mitigant.

Check out Autopilot

This educational article is provided by Republic to help its users understand this area of the market, it should not be construed as investment advice as it is impersonal, disinterested and was produced by Republic for Republic’s users, without remuneration received or expected.

Share this story

Read next

The #1 Place Where Private Wealth Allocations are Moving

Investor education

The #1 Place Where Private Wealth Allocations are Moving

76% of private wealth professionals and advisors say their clients view private markets as returning higher rewards than stocks and bonds.1  A new survey finds that one investment category sits at the top of private wealth managers’ plans for new all...

Timeworx.io: Transforming AI Development Through Decentralized Data Labeling

Crypto

Timeworx.io: Transforming AI Development Through Decentralized Data Labeling

-

Republic Joins Injective as a Validator

Crypto

Republic Joins Injective as a Validator

Powering Institutional-Grade DeFi and Tokenization

2 comments

Share feedback and comment below. Please note that this section is not monitored by Republic. If you have any questions please reach out to investors@republic.co

The comment you're trying to see no longer exists.

Profile picture of Carolyn Van Helden
Carolyn Van Helden
3 years ago
How do you determine the value of your investment over the years?
0 Like Reply
Profile picture of Gabriel Koomson
Gabriel Koomson
4 years ago
It is only wise and prudent to spread risk by diversification.
0 Like Reply

Get notified about new posts

Not a valid email address
Republic

Giving everyone access to early-stage startup investing

For investors
  • Why invest
  • How it works
  • FAQ
  • Risks
  • Privacy policy
  • Accessibility
  • Cookie Preferences
  • Form CRS
For startups
  • Why raise
  • Learn
  • FAQ
  • Instruments
  • Crowd SAFE
  • Tokenized assets
Company
  • About
  • Journal
  • Events
  • Contact
  • We're hiring!
Dollar Refer a startup, get $2,500
Dollar Refer a startup, get $2,500

Invest in the app

Android app iOS app

Invest in the app

Android app iOS app

This site (the "Site") is owned and maintained by OpenDeal Inc., which is not a registered broker-dealer. OpenDeal Inc. does not give investment advice, endorsement, analysis or recommendations with respect to any securities. All securities listed here are being offered by, and all information included on this Site is the responsibility of, the applicable issuer of such securities. The intermediary facilitating the offering will be identified in such offering’s documentation.

All related securities activity is conducted by OpenDeal Broker LLC a registered broker-dealer, Member of FINRA and SiPC, an affiliate of OpenDeal Inc. and OpenDeal Portal LLC, located at 149 5th Avenue, 10th Floor, New York, NY 10010. Please check our background on FINRA’s BrokerCheck.

Certain pages discussing the mechanics and providing educational materials regarding regulation crowdfunding offerings may refer to OpenDeal Broker LLC and OpenDeal Portal LLC collectively as “Republic”, solely for explanatory purposes.

Neither OpenDeal Inc., OpenDeal Portal LLC nor OpenDeal Broker LLC make investment recommendations and no communication, through this Site, or in any other medium, should be construed as a recommendation for any security offered on or off this investment platform. Investment opportunities posted on this Site are private placements of securities that are not publicly traded, involve a high degree of risk, may lose value including the total loss of invested capital, are subject to holding period requirements and are intended for investors who do not need a liquid investment. Past performance is not indicative of future results. Investors must be able to afford the loss of their entire investment. Only qualified investors, who understand the risks of early-stage investment and who meet the Republic's investment criteria may invest. Investors may be restricted to only Accredited Investors or non-U.S. persons, to invest in offerings hosted by OpenDeal Broker. Neither OpenDeal Inc., OpenDeal Portal LLC nor OpenDeal Broker LLC, nor any of their officers, directors, agents and employees make any warranty, express or implied, of any kind whatsoever related to the adequacy, accuracy or completeness of any information on this Site or the use of information on this site. Offers to sell securities can only be made through official offering documents that contain important information about the investment and the issuers, including risks. Investors should carefully read the offering documents. Investors should conduct their own due diligence and are encouraged to consult with their tax, legal and financial advisors.

By accessing the Site and any pages thereof, you agree to be bound by the Terms of Use and Privacy Policy. Please also see OpenDeal Broker’s Business Continuity Plan and Additional Risk Disclosures. All issuers offering securities under regulation crowdfunding as hosted by OpenDeal Portal LLC are listed on the All Companies Page. The inclusion or exclusion of an issuer on the Platform Page and/or Republic’s Homepage, which includes offerings conducted under regulation crowdfunding as well as other exemptions from registration, is not based upon any endorsement or recommendation by OpenDeal Inc, OpenDeal Portal LLC, or OpenDeal Broker LLC, nor any of their affiliates, officers, directors, agents, and employees. Rather, issuers of securities may, in their sole discretion, opt-out of being listed on the Platform Page and Homepage.

Investors should verify any issuer information they consider important before making an investment.

Investments in private companies are particularly risky and may result in total loss of invested capital. Past performance of a security or a company does not guarantee future results or returns. Only investors who understand the risks of early stage investment and who meet the Republic's investment criteria may invest.

Neither OpenDeal Inc., OpenDeal Portal LLC nor OpenDeal Broker LLC verify information provided by companies on this Site and makes no assurance as to the completeness or accuracy of any such information. Additional information about companies fundraising on the Site can be found by searching the EDGAR database, or the offering documentation located on the Site when the offering does not require an EDGAR filing.

To help the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. Therefore, when you use the Services we will ask for your name, address, date of birth, and other information that will allow us to identify you. We may also ask to see your driver's license, passport or other identifying documents.

Republic and its affiliates are not and do not operate or act as a bank. Certain banking services are provided by BankProv, member FDIC / member DIF. FDIC coverage only applies in the event of bank failure. Digital (crypto) assets and investment products are not insured by the FDIC, may lose value, and are not deposits or other obligations of BankProv and are not guaranteed by BankProv. Terms and conditions apply.

Invest in startups using your credit card
You can invest using your credit card

Made in SF/NYC