This Week on Republic #2: Fig and Koning

Welcome to the second edition of This Week on Republic! This week we cover Fig, a video game investment portfolio, and Koning, a medical devices company revolutionizing breast cancer detection.

Fig Portfolio Shares:

Fig is the video game crowdfunding arm of Republic. Republic acquired Fig in 2020 to gain exposure to one of the fastest-growing industries in the world, gaming. It recently announced that it will be offering Portfolio Shares to investors soon.

Fig's business model is to co-publish games with studios, both new firms and legacy firms, by providing funding for projects in return for equity. As games gain market success, shareholders receive biannual dividends. Fig pays out a minimum of 85% of revenues to shareholders every year.

We think this is an exciting way to diversify your investment portfolio. In conjunction with music royalties through S-NFTs that we covered last week; Fig can help you hedge your exposure to public markets. As always, there is a risk. Make sure to do your own research. Check out some of Fig’s titles here.


Koning, a medical device company, creates imaging equipment to detect breast cancer. Current mammogram technology uses uncomfortable compression techniques. Additionally, it has mixed efficacy for different women depending on body type, missing up to 30% of cancers. Koning produces an imaging device that creates high-resolution 360 imageries for cancer detection and solves these problems.

We like Koning for several reasons.

1. Expected revenue for 2021 is $16.6 million. This company is already entering the market in a big way and has cash flow. It needs extra cash to scale, hence the crowdfunding.

2. Forecasted revenue CAGR for the next five years is 90.5%. We think this is a bold prediction. If they can achieve even close to this, it'll be a big payoff. Their technology completely disrupts current methods.

3. Koning previously received $20 million in grant funding from the National Institutes of Health (NIH). It holds a multitude of patents and licenses for its technology, and its devices have FDA approval. Big institutions support their success.

4. We believe that 3D images from Koning will make an outstanding data set for AI/ML applications. We would be surprised if the company isn't already working on an AI/ML technology that uses their imaging and detects breast cancer. Between the imaging device and the cancer detection software, they could disintermediate the current breast cancer screening process and bring cheaper, higher quality care to women around the world. That saves lives.

Next, let's explore their Simple Agreement for Future Equity (SAFE).

SAFE Agreement --

The company is raising money at a $200 million valuation. That is hefty. They can do this because their product is revolutionary, approved by the FDA, and ready for scaling.

The SAFE agreement includes a lock-up clause. It states that shareholders will not sell their shares after an IPO until the lock-up clause expires. The SAFE agreement says that the lock-up period cannot be longer than six months after IPO and can be sooner depending on the company and IPO underwriter's contract.

Any deep dive is not complete without looking at the company's Form C.

Form C --

Koning reported $27.8 million in assets at the end of 2020 with over $1 million in cash. In 2020 it earned over $3 million in revenue. The company had ~$4.3 million in short-term debt and ~$1.1 million in long-term debt. These debt numbers bear watching as the company is young and scaling. The cost of goods sold by the company in 2020 was $417,340. Suppose it cost the company this much to produce the goods which brought in $3 million. In that case, we can roughly estimate the company's margin on goods production to be 86%. This estimate does not include administrative overhead.

If we use the same margins to estimate cash flow for this year, we can peek into 2021 finances. If the estimated company revenue is $16.6 million and the cost of goods is 14%, we expect ~$14.3 million of cash after goods production. That money should provide plenty of runway. So why raise money via crowdfunding?

We believe that Koning is going for a lightspeed scaling strategy that in conjunction with their patents creates a massive moat in their niche. If they can scale and become the go-to company with layered AI/ML software built on their imaging data, they could own the market and demand a massive valuation for a buyout.


We see Koning scaling over the next five years and completely disrupting the current breast cancer screening system. Companies like Abbott, GE, and Phillips could all benefit from buying Koning. According to a Koning employee in the Republic Q&A section, the company already received a pre-FDA approval buyout offer. The company rejected the offer because they did not believe the valuation to be high enough. A responsible exit could bring significant gains to shareholders. As always, do your own diligence before making any investments.

If you are bullish on this thesis you can invest in Koning here.

If you are bearish, you can save your hard-earned money for another opportunity.

If you found this article helpful, consider tossing a coin to your analyst.

If not, tell us what we can do better at

I am not a financial advisor. This article is for educational purposes only. You should do your own independent research before making any investment decisions.

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