Show notes
Today, we have a guest who's democratizing access to private investing. Ken Nguyen is the co-founder and CEO of Republic, a multi-asset investment platform for private markets. Ken is a pioneer in the private markets investing world and a serial operator who knows how to build businesses. He's helped grow Republic to hundreds of millions of dollars in gross transaction volume over the past three years after Republic spun out of AngelList. After Ken was an instrumental part of building the investment and regulatory infrastructure at AngelList, as their General Counsel, Ken founded Republic to create a leading equity crowdfunding platform for both nonaccredited and accredited investors. While their incredible progress on the retail crowdfunding side is remarkable, Republic's platform and vision is so much more than simply a retail crowdfunding platform. They also have an accredited investor platform and they enable investors to invest into everything from real estate to e-sports and gaming financing to small businesses. Republic has done the hard things first. They built the investment infrastructure for private markets. And they combine that with a Robinhood-like investing experience for private markets, for both retail and high net worth investors alike. They've also been innovative in how they engage consumers by creating a Republic Note, a security token that has created network effects on their platform for users.It's been really fun to watch this team execute at a blistering pace from the time that they started out with the idea of enabling investors to invest in startups at twenty dollar minimums, to building out a comprehensive private markets investment platform. Ken has been instrumental in that success with his infectious energy tireless work ethic and drive to create democratized access to investing for people around the world.This was such a fascinating conversation. We talked about Ken’s drive for starting an investment platform that could enable everyone to participate in wealth creation in private markets, how investing and owning equity is part of the American Dream, how Republic has unlocked access to private markets for all investors, “Lean back vs lean forward” framework applied to investing (h/t Rishi Garg of Mayfield Fund for the “lean back vs lean forward” framework), and how community is such a big driver of Republic’s growth and success as a business.I hope you enjoy.TranscriptNote: This Transcript was created by an AI software package. It is not an exact translation of every word in the podcast.Michael: [00:02:30] Ken, welcome to the Alt Goes Mainstream podcast. Ken: Michael, thank you so much for having me. It's such a pleasure to be here. Michael: Oh, it's great to see you. I love that background of New York. Ken: I am in New York. So, art mimics real life or the other way around. THE FOUNDERS STORYMichael: [00:02:46] Well, you've had a busy year, so congrats on everything. But before getting into Republic and all the things that you're doing, I'd love to hear your story. I mean, you've had such an incredible story of how you've gotten to Republic. So what is that story? Ken: [00:03:01] Yeah. Thank you, Michael. I definitely have a bit of an unusual founder story.My family immigrated from Vietnam to the Bay Area in California. And so growing up in the late nineties, early 2000’s, you hear these stories of companies going IPO and tech and Google and Facebook. But just because you were smack in the middle of Silicon Valley, it doesn't mean that I or my family had anything to do with it.We definitely weren't accredited, but that fascination early on, I think, ended up, staying with me. I ended up going to law school. Started out as a litigation attorney in New York and went into finance. And along the way, I think the story, the headline news that caught my attention the most was always tech companies. You know, you hear more and more of Facebook and then Airbnb. I had the opportunity to go back to the Bay Area and academia. I spent two years as a Teaching Fellow at Stanford and studying corporate governance. But Stanford happens to be also a tech hub. And so more and more, the different stages in my life just inserted me more and closer into the tech ecosystem and then I had an opportunity to join AngelList when they first launched their first syndication product. So I joined. I think the first non-engineer hired as the General Counsel back in 2013, 2014. Part of that work led to a change in the law, which is regulation crowdfunding in 2016. And I'm sure we're going to go into it. But in short, between the Great Depression in the 1930s, all the way to 2016, you had to be a millionaire to invest privately. In 2016, all of that changed. It's like opening up the flood gates. And that's when the team and I set out to found and launch Republic. DEMOCRATIZING ACCESS TO INVESTINGMichael: [00:05:04] That's fascinating. And it seems like you really have a variety of experiences. Everything from the kind of legal and regulatory side to working in startups, to working in private companies. Was there really a specific moment in your life that has driven you to make it your mission to democratize access to investing? Ken: [00:05:25] I think there were three moments. Thinking back, probably the first moment was when my oldest brother who was 15 years older than I am and was already very established by the time I graduated college and he was an accredited investor – the first one in the family to be accredited.And he was like, Hey Ken, do you know how I can invest in this company called Facebook. And I was probably one of the earlier users, one of the earliest users of Facebook. And I'm like, great question. I'm an Associate at a law firm and I have no idea how you can do that. I asked around - no one knew how. Right in the middle of New York City, every law firm partner is a multi-millionaire and they're like, yeah, this is Silicon Valley stuff.So I think that piqued my curiosity, but also I had a desire to be like, Hey, I want to be in. I use this product. I really like it. And wanting me as a stakeholder to be a shareholder. So, I would say that that was the first moment.The second one was when, after two years of spending my time at AngelList, I realized that the accredited only model could only go so far. AngelList did open up the venture ecosystem to a lot more people, but you still have to be in the know, have to be accredited. And, I think that moment when AngelList shifted their attention to focus more on upstream institutional family offices, that's when I was like, wait, there is this law that's going to be effective very soon. And this is exactly what I, as a teenager growing up in Silicon Valley, wish that it was the case that I could get in. So, I think those two moments, rather than three in combination, probably culminated in the idea and the passion for retail investing. Michael: [00:07:31] Well, you're bringing up a really interesting point, right. And it's been during a time where value creation in private markets has far outpaced value creation in public markets. And yet, so many people really up until the...