Republic, a leading investment crowdfunding platform, is expanding its investment offerings with the acquisition of Compound. While starting as an early stage offering platform, Republic is now providing property investment options with Republic Real Estate.
Announced today, Republic has issued the following statement:
“We’re excited to announce that Republic has acquired Compound, a real estate investment platform that lets everybody invest in real estate around the world in small dollar increments. Compound is based in New York City and has been backed by some of the biggest venture capital firms in the world, including NEA, Founders Fund, Global Founders Capital, and Kairos.
Compound has a seasoned real estate team with decades of investment experience through various market cycles.
Together we’re launching Republic Real Estate, bringing you access to high-quality real estate investment opportunities to complement your existing startup investments with Republic.”
Compound has previously listed at least on offering on Republic so there was already an established relationship between the two investment platforms. Republic has been messaging for quite some time its intent to expand beyond securities offerings for early-stage firms.
Earlier this year, Republic acquired Fig, a game-crowdfunding platform utilizing Reg A+ to raise capital for promising games.
In a tweet, Republic CEO Kendrick Nguyen, revealed the new vertical:
“Want to diversify from the “all or nothing” return potential of startup investing? How about micro-investing in residential real estate, starting at $100.”
Each of these securities offerings is using the Reg CF securities exemption making Republic one of the few platforms to use this vehicle for real estate offerings.
Republic said the time is right for real estate investing:
“The return profile of real estate investing has historically been steady, which we believe is a natural complement to the higher-risk, higher-return investments currently on our platform. Now, you can invest in real estate like you invest in startups.”
Republic touts the benefits of real estate investing including passive income and stable income. While early-stage investing is exceptionally risky as many startups will fail, in general, real estate is viewed as a lower risk pursuit – contingent upon specifics of any deal.
Matt Melbourne, Head of Republic Investment Team, added:
“Since Republic launched in 2016, our users have been asking for real estate opportunities. Until now, we’ve focused on startups and lacked the expertise or experience to open up this asset class to our investors. Janine, Jesse, TJ, and the Compound team at large are an incredible group of real estate innovators, investment professionals, and startup operators who share our mission of bringing private investing to the masses.”
Republic is a sister platform of AngelList and digital asset focused CoinList.