Republic Report:

The business
of diversity
Good ideas are universal.
Opportunity isn’t.
In 2016, we set out to build Republic because we knew that good ideas are universal, but access
to capital isn’t. It’s common knowledge that women and underrepresented founders of color1 are
often overlooked by traditional funding sources. And while we think supporting diverse founders to
succeed is the right thing to do, we fundamentally believe that it’s also great for business.

Data shows that diverse teams create more value for investors. First Round Capital took a look at
the success of their portfolio companies over 10 years and found that teams with at least one
female founder performed 63% better than male-only founding teams2. A 2018 McKinsey study
showed that ethnically/culturally diverse teams are 33% more likely to lead in profitability3. Diverse
founders tackle a range of problems, but they’re often starting businesses that solve “real world”
issues in the communities they come from and are tapping into the $10 trillion+ collective
purchasing power of women, Blacks, and Latinos in the U.S.4

So with this in mind, 2 years in, we’re taking stock of our contribution towards leveling out the
investment landscape for diverse founders and investors. To date, 25% of investments on Republic
have gone to companies with underrepresented founders of color and 44% have gone to
companies with a female founder versus 1% and 13%, respectively, for the industry5.

Percent of 2017 venture Percent of 2017 venture

investment in underrepresented investment in companies with
founders of color* 29% a female founder

25%
44%

13%
1%

Traditional VC Republic U.S. population Traditional VC Republic

% of blacks and
latinos

Source: CB Insights - 2010, Company Data, *U.S. Census data -- underrepresented Source: TechCrunch, Company Data. Includes companies with
groups include Black and Latino/Hispanic. Includes males and females. at least 1 female founder.

1Underrepresented founders of color are defined as Black and Latino/Hispanic.

2FirstRound Capital data, First Round “10 Year Project”, 10years.firstround.com.
3McKinsey, “Delivering through diversity” Report, January 2018.

4Nielsen consumer data.

5Republic investments include equity deals, excludes crypto deals. N=50.

An investing platform for
everyone – unleashing the
power of many.
In addition to democratizing access to capital for founders, Republic allows anyone, regardless of
their income or net worth, to invest in startups for as little as $10 through equity crowdfunding
(specifically under Regulation CF of the JOBS Act). A 2017 study by the Angel Capital Association
found a sizable racial gap relative to the population among U.S. investors, and TechCrunch
reported that women make up only 8% of VC partners, who are the ones ultimately writing checks.
Our platform works to shrink these gaps by letting everyone open their wallets to invest in startups.

Female investors on Republic VS. the industry in 2017

30%

22%

8%

Partners at top Angels Republic

100 VC firms

Source: TechCrunch, Angel Capital Association - Nov 2017 Report, Company Data

By putting the power to invest into the hands of many, we hope to open up an opportunity to put
billions of dollars to work in promising startups.  Equity crowdfunding campaigns on Republic
reveal how founders can mobilize their own diverse networks, who otherwise wouldn’t have a
chance to participate, to work on businesses that solve real issues for their communities.

Fatima Dicko, CEO of Jetpack, an on-demand service that delivers everyday

essentials focusing on the student market said, “Republic’s platform allows
founders to engage people who wanted to support women and African
American founders and never before had a practical means to do so.”
 Martha Hernández, Founder and CEO MadeBOS 70%
of MadeBOS, runs an AI-driven, career investor base
pathing platform for entry level workers. VS. industry
in 2017
The majority of her investors were Latino
and within that group, predominantly female. She said, “My
campaign on Republic gave me the capital, credibility and
2%
visibility I needed to take my business to the next level. It
provided a platform to activate my Latino community in
Oakland who believed in me and wanted to do something
actionable to support my business.”
Percent of latino Percent of latino
angel investors investors
in the U.S in MadeBOS

Source: Angel Capital Association -- Angel Capital Association - Nov 2017 Report, Company Data

Obi Omile, Founder of the Cut, is building The Cut 50%

a mobile platform is modernizing the investor base
barbershop experience. The majority of his VS. industry
in 2017
customers are Black or Latino. He was
excited that Republic enabled him to galvanize a very
dedicated portion of his user base to invest in the company.
About the awesome results he said, “The campaign resulted
1%
in us gaining free brand ambassadors who are now aligned
with us in terms of the success of the business. The better
they do, we do, so they are very active and engaged on our
behalf on social media and offline in promoting The Cut.” Percent of black Percent of black/
angel investors latino
in the U.S investors
in The Cut
Source: Angel Capital Association -- Angel Capital Association - Nov 2017 Report, Company Data
Where we’re headed and
how to get on board.
We have no doubt that more diversity in the startup ecosystem will be good for
business. It’s too early to tell where it will have the biggest impact: higher
performing teams, increased job creation, or the emergence of new industries.
Equity crowdfunding has the potential to be a true catalyst for this change.
We’re off to a great start, but you can help us speed things up even more.

Curious to hear more?

Check out republic.co
and email us at team@republic.co