Invest in private credit deals
Invest in startups
Investments
$500
Investors can enter the private credit market via Percent with a minimum of $500, accessing a variety of asset-based securities and corporate loans.
Moderate Risk
3/5
Investing on Percent comes with inherent risks, despite efforts to minimize these through a proprietary risk framework for its own deals. The risk levels can vary across the platform, depending on whether Percent or a third party underwrites the deal.
High Risk
4/5
Investing on Republic involves significant risks such as the potential total loss of investment, illiquidity, long-term commitment without guaranteed returns, risk of dilution, limited information on investments, and possible impacts from regulatory changes.
Minimum Liquidity
1/5
Liquidity on Percent, as with many private credit platforms, varies by investment. Generally, these investments are less liquid than public stocks, tied to longer-term commitments without guaranteed immediate access to funds.
Minimum Liquidity
1/5
Investments on Republic are generally illiquid, meaning it may be difficult to sell or convert them into cash quickly.
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Moderate Return
13.41 %
As of February 1, 2024, Percent offers a 2.5% interest rate on idle cash in accounts and reports a historical weighted average APY of 13.41% on investments.
Not Predictable Return
N/P
Returns on Republic depend on the success of invested projects, companies, or funds, with potential payouts varying by investment terms.
Short-term Investment
3+ months
Percent offers investment horizons starting at 3 months, accommodating short-term investment strategies.
Long-term Investment
3-10 years
Investments on Republic typically have a long-term horizon, often requiring several years to over a decade before potential returns are realized.
Who can invest
United States
Percent accepts investments only from accredited investors in the U.S. with U.S. bank accounts, adhering to Reg D 506(c) exemption rules.
Who can invest
International
Anyone 18 or older can invest on Republic, with specific eligibility and investment limits varying by campaign. International investors can participate in many offerings, subject to local laws and specific campaign terms.
Moderate Volatility
3/5
Assets on Percent generally show lower volatility than public market investments due to the nature of private credit, which often involves fixed returns from contractual agreements.
Moderate Volatility
3/5
Assets on Republic, like startups and private ventures, exhibit high volatility due to factors like market sentiment, regulatory changes, and business uncertainties. Valuation changes can be sudden and significant, reflecting the inherent risks and potential rewards of these types of investments.
Regulation and audits
SEC Regulated
Percent is regulated under Regulation D, 506(c) of the Securities Act, allowing only accredited investors to participate after verifying their status.
Regulation and audits
SEC Regulated
Republic operates under SEC regulations like Reg CF, Reg A+, and Reg D, ensuring transparency and investor protection. Companies on Republic must adhere to disclosure and, in some cases, undergo financial audits or reviews.
Insurance
Yes
Funds deposited with Percent are held at an FDIC-insured bank, ensuring protection up to $250,000, the maximum allowed by law, providing security for investors' capital in case of a bank failure.
Insurance
No
Investments on Republic are not covered by traditional insurances or state guarantees like FDIC protection.
Payouts
No Recurring Payouts
Percent provides returns through interest payments or fixed returns from private credit deals, rather than traditional dividends.
Payouts
No Recurring Payouts
Dividends on Republic are not standard across all investments and depend on the specific agreement with each company. Some investments may offer dividends through revenue-sharing arrangements, but many startups prioritize reinvestment over distributing earnings.
Withdrawals
Upon investment maturity on Percent, funds (principal and yield) are credited to the investor's account. Investors can then transfer these funds to an external account or reinvest.
Withdrawals
On Republic, returns mainly come from liquidity events like acquisitions or IPOs, but these are uncertain and can take years. Selling shares directly is typically not possible within the first year due to federal restrictions, with few exceptions. Even after this period, the resale market is limited and subject to legal considerations.
Extra Fees
Yes
From September 2023, Percent charges a fee of 10% on interest payments, not affecting the principal.
Extra Fees
Yes
Republic charges an administrative fee for investment commitments, typically 2%, with a minimum of $5 and a maximum of $300, varying by offering. This fee is refunded if an offering is canceled or withdrawn but not if the investor cancels their commitment.
Taxes
Tax Form
Percent provides investors with a consolidated 1099-INT form each tax year, reporting all investment income as ordinary income for tax purposes.
Taxes
Annual Statement
Republic does not provide tax documents or specific tax guidance for investments. Tax implications, such as for Crowd SAFE and Token DPA investments, depend on the investment's nature and liquidity events.