Raising via investment crowdfunding on Republic is not a heavy lift, contrary to what you might expect.
Please note: these fees are not paid to Republic, but are objective costs associated with preparing the documents and running a compliant campaign. Republic only takes commission on successful campaigns.
- Form C: $1,500
The SEC requires fundraising companies to provide certain information on Form C. This disclosure informs prospective investors and is provided to the SEC. iDisclose, a third party service provider, helps you complete a Form C in about 9 hours when it would normally take over 4 weeks manually. We also have inhouse staff to help you along the way. You are required to pay this cost up-front when you start using the service.
- Escrow: Approximately $1,500
All campaigns must have an escrow agent. The costs of escrow vary depending on the number of investors you end up with and is not paid until after the campaign is over, directly out of the proceeds of the escrow account.
Baseline cost total: $3,000
Other potential costs:
- Financials: $1,000–$4,000
If your financials are not complex, you have been diligent with bookkeeping and you are organized expect this cost to be in the middle to lower range. If you already have GAAP converted financials your costs will be lower. If you have a licensed CPA on the team your costs can be $0. If you use professionals expect the bill to be sent once services are complete.
- Video: $0
Spend as little or as much as you want. It’s up to you. Already have a video? Chances are you can use that for your campaign.
- Attorney review: $0-$1,500
If you have an in-house counsel or your own representation, you can use their services. If you need representation, our partners offer this flat price for Form C compliance and legal review. In addition they will file your Form C, all amendments during the campaign (if applicable) and your post campaign Form C-U declaring the campaign end. Finally, they will help you setup and review your investor agreement (i.e., the security you are selling to investors - most likely our Crowd Safe). This bill is typically paid upfront.
- Marketing budget: $0
We highly recommend, but do not require, you to spend money on marketing, social media or otherwise. There might be a live event you want to attend, you might decide to have a party. These costs are optional and you decide on the total costs, but can have major impact on how much you raise.
- Credit Card: ~3.5%
If you would like your investors to have the convenience of using a credit or debit card for investment a ~3.5% fee is charged by the service provider. For example if an investor uses their card for a $100 investment your fee would be $3.50. This would only apply to investments made with a credit or debit card, and only if the campaign is successful. Please note, currently Token DPA offerings cannot utilize credit card processing.