Startup Investing Platform Republic
Republic, a leading startup investment platform, is launching a legally compliant free private equity incentive program (or “Sharedrop”) in conjunction with the banking application Linen App.
According to Republic, 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 says it worked closely with Linen App to create this bespoke solution to offer equity in a private company. The company 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.
“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 stated to be the first private company to reward early retail users with equity in its company, and Republic says it 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.
“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.”
According to the company, Linen App Sharedrop users will be able to start claiming their equity stake in early December.