How the money works
Investors that invest in the startup receive a security which is an agreement that contains financial terms between the investor and the company that represents the investor's financial interest. Investors make money if the company is successful resulting in a return on investment. This is done through the Crowd SAFE security.
Republic makes their money by collecting 6% of the total amount raised from the startup and 2% of the securities that are offered in a successful financing.
Investment risks
Investing in private equity means that the securities are not publicly traded. This means that they are subject to holding period requirements and should only be invested in by investors who do not need a liquid investment. Investments in private companies are highly speculative and come with a high degree of risk. This risk can include the loss of the investment.