Startup Investing Platform Republic Launches Industry-First Free Private Equity Incentive Program

NEW YORK, Dec. 5, 2019 /PRNewswire/ -- Republic, the leading startup investment platform, is launching the first-ever legally compliant free private equity incentive program (or "Sharedrop") in conjunction with the banking application Linen App. Linen App is offering $300,000 worth of investment in the company using a Simple Agreement for Future Equity (SAFE) to prospective users for downloading and signing up for the app. Republic worked closely with Linen App to create this industry-first bespoke solution to compliantly offer equity in a private company.

Republic built the compliant and user-friendly Sharedrop tool to provide companies, such as Linen App, the opportunity to give away private securities to customers and fans for free or in exchange for their contribution to a project. This comes on the heels of failed attempts by leading companies to give non-employee contributors equity in their respective companies. It also follows Republic's milestone of hosting the first security Airdrop to retail investors in the U.S.

"Equity can now be used as a flexible engagement and marketing tool like no other," said Jed Halfon, a Partner at Republic. "Giving away a piece of the pie and getting fans and users to share in the success of a company is one of the best ways to bootstrap a community and grow the user base."

Linen App is the first private company to reward early retail users with equity in its company, and Republic is currently the only platform capable of launching compliant Sharedrops. Since equity and stock options are the most powerful incentive tool in a startup's toolkit, Republic now lets companies take this tool and face it outwards by giving away incentives to early adopters, key customers, and supporters. Previously, product users and early adopters missed out on the potential upside from their early support.

"Acquiring early users and building trust in consumer fintech is no small task," said Vitaly Bahachuk, CEO of Linen App. "Just as startups grant early employees stock options, we want to reward our early members with equity and build Linen App together with our community. Imagine being an early user of some of the biggest tech companies and receiving equity – it's an exclusive opportunity."

Linen App Sharedrop users will be able to start claiming their equity stake in early December. 

About Republic

Founded in 2016, Republic is a private investing platform that lets anyone invest in companies years before they go public. Spun out of AngelList, Republic's regulated private investing platform features more than 400,000 users investing as little as $10 in over 140 carefully vetted companies. Republic defies industry trends by elevating the underrepresented entrepreneurs who traditionally go without access to private capital, while allowing for anyone — regardless of income or net worth — to invest in their visions. With over $65 Million invested by users and a 90% funding success rate, Republic is the first private investing platform truly for everyone. For additional information, visit republic.co, @joinrepublic, and www.facebook.com/joinrepublic.

About Linen App

Founded in 2018, Linen App is a banking and lending app powered by blockchain-based lending liquidity pools such as Compound where interest rates are set algorithmically based on supply and demand. Linen App allows the non-tech savvy to participate in the emerging field of Decentralized Finance (DeFi) to earn yield on cash and stablecoins. Linen App abstracts away the complexity of blockchain infrastructure, making it accessible to everyday people. Linen App is currently invite-only. Linen Card, a debit card to spend funds supplied to liquidity lending pools, is planned to be released early next year. For additional information, please visit: www.linen.app, @getLinenApp and www.facebook.com/LinenApp.

Media Contact: 
Ryan McKenna, for Republic 
781-749-0077 ext. 21 
[email protected]

Linen 
[email protected]

SOURCE Republic