Editor’s Note: This article is regularly updated to bring you relevant, up-to-date information.
When it comes to finding startups to invest in, Republic is one of the top online equity crowdfunding platforms. Since 2016, this company has facilitated more than $200 million in funding for startups. There are also more than a million investors on the platform.
CEO and co-founder Kendrick Nguyen immigrated from Vietnam to become a successful securities attorney in the U.S. Through this experience, he saw the challenges entrepreneurs faced in getting financial backing. He thought an online platform would help level the playing field.
Note that the equity crowdfunding deals on Republic are structured as SAFE (Simple Agreement for Future Equity) instruments. This means that the allocation of equity is based on a trigger event, such as an acquisition, IPO (initial public offering) or subsequent funding. A typical deal has a minimum investment of $100.
So then, what are some of the best startups to invest in on Republic today? Let’s take a look at these seven:
- Relay On Demand
Equity Crowdfunding: AudioCardio
Hearing aids can be costly, ranging from $2,000 to $8,000 per pair. There is also usually no insurance coverage and hearing aids can be bulky.
But the good news is that entrepreneurs are looking to innovate the industry. Just look at AudioCardio. This startup is focused on therapies to help people improve their hearing.
The technology is called the Threshold Sound Conditioning system and it is part of a mobile app. A person will try to hear low sounds to strengthen hearing. According to trials at Stanford University and Palo Alto Medical Foundation, about 78% of the participants had a 10+ improvement in decibel recognition.
The AudioCardio app has over 24,000 users and 2,700 customers. There have been more than 135,000 therapy sessions. The company projects that – by 2024 – there will be about $21 million in ARR (Annual Recurring Revenues).
In terms of the equity crowdfunding campaign, the company has gotten commitments for over $95,000 from more than 200 investors and the valuation is $9.75 million.
Decentralized finance, or DeFi, is a crypto system that allows for providing trust with third parties for financial transactions — say, for exchanging an asset or earning interest. Then there are social tokens, which allow creators like artists and video game streamers to better engage with communities.
While such mechanisms are valuable and helpful, they can also be complicated to use. But Linen is focused on making things much easier. It helps identify crypto opportunities and also has a wallet for making seamless transactions. It handles private keys, backups and recovery systems.
The Linen App is in beta for Apple’s (NASDAQ:AAPL) iOS, and there have been over 15,000 downloads so far. There are also plans to develop an Android version.
Consider that the company has already raised $1.7 million from investors like Coinbase, Polychain, HashKey, Youbi and Wyre. As for the equity crowdfunding campaign, Linen has received indications of more than $2.6 million from over 2,500 investors and its valuation is $22 million.
About one in five Americans live with some type of mental illness. But unfortunately, many do not receive help from qualified professionals. Some reasons why include the high costs and lack of access to convenient locations.
But Trusst is leveraging technologies to solve that problem with a specialized messaging app based on the feedback of experts in psychology. The app is also built with HIPAA (Health Insurance Portability and Accountability Act) privacy and confidentiality systems.
The service has two tiers. First, a user can get access to a bot that is based on interactive scripts. Next, there is a system to get matched to licensed health professionals.
Launched in 2019, Trusst is now available in 35 states and generates more than $125,000 in annual recurring revenue (ARR). Over 100 therapists on the platform have exchanged more than 13,000 messages with patients.
Trusst has raised over $1 million from angels and venture capitalists (VCs). As for equity crowdfunding, the company has raised more than $87,000 from 279 investors and the valuation is $6 million.
The construction industry is highly complex, involving many processes and parties. This is why projects can easily be delayed and have cost overruns.
But DigiBuild is trying to solve these problems. The company has built a sophisticated platform that helps with areas such as risk mitigation, supply chain management and inefficient payment processing. At the heart of all this is the use of blockchain technology, which allows for transparency, verification and cost-efficient tracking and monitoring.
According to DigiBuild, this approach can result in major improvements. Some of the metrics include 50% less expensive discovery time, 4x improvement in speed for payments and lien waiver contracts and greater cash flows. Note that 30 of the largest companies in construction are either customers or beta users.
To build the platform, the company already raised $340,000 in pre-seed capital from blockchain investors. Regarding the equity crowdfunding round, the company has raised over $385,000 from over 1,000 investors, and the valuation is at $7.5 million.
Digital assets — like PayPal (NASDAQ:PYPL) accounts, cryptocurrencies and even passwords — are a growing part of the estates of millions of people. But traditional wills are usually insufficient to effectively make transfers to heirs. For example, there is a set of laws, called RUFADAA (Revised Uniform Fiduciary Access to Digital Assets Act), which have been adopted by 46 states, that effectively outline what can be done and who can control the accounts when a person passes away.
Clocr offers a streamlined approach to that problem. It’s built from the ground up to handle a myriad of digital assets for estate-planning purposes. The system makes it easy to track accounts and manage relationships with the beneficiaries. The technology also has three pending patents.
In terms of the business model, there are various subscription plans that range from $9.99 per month to $600 for a lifetime version. There are also business-to-business options for partners like financial planners, employers, estate lawyers, insurance agents and so on.
As for the equity crowdfunding round, the company has raised over $180,000 from 487 investors, and the valuation is $8 million.
Living in quarantine due to the novel coronavirus has highlighted the adverse impact of isolation for many people. But even before the pandemic, this was a major health problem. According to the National Institute on Aging, isolation has been linked to heart disease, anxiety, depression and Alzheimer’s disease.
MyndVR wants to use virtual reality (VR) to help out. The company’s system is easy to use and allows a person to have immersive experiences through a technique called VR Therapy. It has been proven effective for PTSD, phobias and pain.
MyndVR is sold as a subscription service, which includes the hardware, content, training and support. The primary customers are health care providers, veterans homes and senior living communities.
The company’s contracted revenue is over $600,000 and its customer base has tripled last year to more than 200. The company estimates that revenues will be over $100 million by year five.
MyndVR has already raised $1.85 million. As for the equity crowdfunding campaign, the company has gotten commitments of over $134,000 from 337 investors and the valuation is $8 million.
Relay On Demand
For trucking companies, one of the biggest challenges is finding qualified drivers. The recruiting process can be expensive and time-consuming. Something else to keep in mind: the turnover rate for truckers is close to 100%.
To help out with the problems in the industry, Relay On Demand has developed a digital marketplace which includes more than 1,000 pre-certified drivers who are looking for contract opportunities.
Relay On Demand’s platform includes a web portal as well as an iOS and Android app, similar to Uber (NYSE:UBER). The app is also easy to use, requiring only three clicks.
The user base has been growing at about 20% month-over-month, and the ARR is roughly $2 million. The business is also profitable, making it a great pick for people looking for startups to invest in.
Regarding the equity crowdfunding round, the company has raised more than $315,000 from 879 investors, and the valuation is $8 million.
On the date of publication, Tom Taulli did not have (either directly or indirectly) any positions in any of the securities mentioned in this article.
Tom Taulli (@ttaulli) is the author of various books on investing and technology, including Artificial Intelligence Basics, High-Profit IPO Strategies and All About Short Selling. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s.