Republic, a lead investment crowdfunding platform, has announced Republic Local – a vision of bringing securities crowdfunding to main street businesses. Republic Local is said to be an extension of NextSeed, a crowdfunding platform acquired by Republic in late 2020. At that time, Republic said that NextSeed would expand its capabilities with its infrastructure for debt offerings as NextSeed specialized as a bank replacement for smaller firms in need of debt financing. Republic Local is said to be derived from “years of expertise and legal innovation” in providing access to capital for smaller firms.
In an email. Republic said they will be bringing more main street businesses to the Republic platform located across the United States. Republic envisions a marketplace where individuals have the opportunity to invest in businesses located where they live or work. Republic would like to empower businesses and investors to support smaller firms where interests are aligned to drive local economies. Think bars, restaurants and other small firms.
Regarding NextSeed, while existing investments and servicing will continue as is, NextSeed will no longer be listing new securities offerings as the brand will be shelved.
“You will now see the types of investment offerings previously available on NextSeed at Republic Local on Republic.co. Please note that in order to make new investments at Republic, you will need to sign up for a new account at Republic.co.”
Currently, there are multiple investment opportunities listed on Republic Local with various securities structures as well as testing the waters. All securities are being issued under Reg CF, an exemption that enables an issuer to raise up to $5 million from both accredited and non-accredited investors. There are also several real estate offerings including a Miami Cityfund, a Dallas Cityfund, and Austin Cityfund.
Republic has dabbled in more localized securities offerings for some time now this appears to be the culmination of its experience over the past couple of years as it focuses on a diverse portfolio of online capital formation verticals.
Last month, Republic announced a Series B funding round of $150 million at an undisclosed valuation. Lead investor Valor Equity Capital said the investment was a “bet on the future of private investing and digital assets.”