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Republic Diversity Report June 2018
Republic Diversity Report June 2018
Republic Diversity Report June 2018
The business
of diversity
Good ideas are universal.
Opportunity isn’t.
In 2016, we set out to build Republic because we knew that good ideas are universal, but access
to capital isn’t. It’s common knowledge that women and underrepresented founders of color1 are
often overlooked by traditional funding sources. And while we think supporting diverse founders to
succeed is the right thing to do, we fundamentally believe that it’s also great for business.
Data shows that diverse teams create more value for investors. First Round Capital took a look at
the success of their portfolio companies over 10 years and found that teams with at least one
female founder performed 63% better than male-only founding teams2. A 2018 McKinsey study
showed that ethnically/culturally diverse teams are 33% more likely to lead in profitability3. Diverse
founders tackle a range of problems, but they’re often starting businesses that solve “real world”
issues in the communities they come from and are tapping into the $10 trillion+ collective
purchasing power of women, Blacks, and Latinos in the U.S.4
So with this in mind, 2 years in, we’re taking stock of our contribution towards leveling out the
investment landscape for diverse founders and investors. To date, 25% of investments on Republic
have gone to companies with underrepresented founders of color and 44% have gone to
companies with a female founder versus 1% and 13%, respectively, for the industry5.
25%
44%
13%
1%
Source: CB Insights - 2010, Company Data, *U.S. Census data -- underrepresented Source: TechCrunch, Company Data. Includes companies with
groups include Black and Latino/Hispanic. Includes males and females. at least 1 female founder.
30%
22%
8%
Source: TechCrunch, Angel Capital Association - Nov 2017 Report, Company Data
By putting the power to invest into the hands of many, we hope to open up an opportunity to put
billions of dollars to work in promising startups. Equity crowdfunding campaigns on Republic
reveal how founders can mobilize their own diverse networks, who otherwise wouldn’t have a
chance to participate, to work on businesses that solve real issues for their communities.
Source: Angel Capital Association -- Angel Capital Association - Nov 2017 Report, Company Data