Earlier this year, Thomsen’s Inc. raised $67,091 through a crowd equity campaign through the Republic platform.
That process, and the due diligence that went with it, caught the attention of a Swiss investment firm that wanted to invest $5 million into the Pacific Northwest company.
“We said we don’t need that much. Maybe $2 million the first year and then follow-on,” said Thomsen’s CEO Robert DeKoning.
Negotiations are ongoing, he said. But, the conversation started because of the Republic campaign.
Republic partners with the Oregon nonprofit Regional Accelerator & Innovation Network Catalyst. The partnership is designed to help Oregonians invest in their communities’ small businesses. Though still very much in beta testing, it has been renewed through the end of this year, according to RAIN.
It’s a piece of an overall capital access program the nonprofit calls RAINcap, which has two pieces. The partnership with Republic allows for crowdfunding equity ownership in businesses. It also launched a partnership with Portland venture capital firm Portland Seed Fund that helps founders from Oregon and Southwest Washington get investor-ready.
The Republic program is open to anyone in Oregon while the PSF program targets tech companies that are scalable. For both programs, there is a basis of education.
“We meet them wherever they are” to determine the best course of action, such as bank loans, crowdfunding or private investors," said Caroline Cummings, RAIN executive director.
Over the course of six to 12 weeks, the group runs founders through what are essentially accelerators to go over business plans, financials and customer discovery.
Thomsen’s Inc. has created a new system using hardware, software, chemicals and science-based testing for cleaning high-touch surfaces.
See also: 5 alternative pathways to startup capital
The Portland-based DeKoning leaned heavily on the RAIN team to get through the deep due diligence process of Republic.
“There are a lot of companies that monitor companies like ours going through this process,” said DeKoning. “We were contacted by 10 to 12 potential investors and partnerships. I’m still getting emails.”
Thomsen’s experienced success with the program, but the Republic diligence took time: DeKoning likened it to a mini IPO. As a result, Cummings and RAIN are still tweaking the program to ensure companies have the right support to get through it.
Since 2021, 88 companies have expressed interest in the program. Twelve were accepted into the education piece. Three companies are in due diligence and two have raised money.
