Republic, a leading investment crowdfunding platform, has announced the offering of Republic Note – scheduled to go on sale July 16, 2020.
Republic Note is a profit-sharing token with a funding cap of $8 million. According to the company, Republic Note is in line with the platform’s mission to “democratize private investing further, by giving our community a chance to share in profits.” Republic Note is open to all investors, in the US and around the world.
The crowdfunding platform is the first such regulated platform to move to share in the success of its online capital formation process with a unique digital asset offering.
Similar to more traditional venture capital firms, Republic generates additional income when startups and later-stage firms that have raised funding with Republic later sell or go public. Republic earns cash based on pre-determined carried interest rates or commissions. Republic wants to allow smaller investors to participate in these earnings. Republic Note holders may expect to receive income when platform proceeds exceed $2,000,000 in total.
Republic Note is anticipated to be a tradeable asset. The digital asset will be issued on the Algorand blockchain with a wrapped version on Binance Chain expected at some point in the future. No more than, 800,000,000 Republic Notes will be created.
The offering is being bifurcated into two segments. A Reg D 506c security offering for accredited investors as well as a Reg A+ offering for non accredited investors. Shareholders in the different exemptions are remunerated differently as Reg D investors receive a portion of the carry while Reg A+ investors get a cut of the commission. Of note, the Reg A+ filing (Form 1-A) has not yet been qualified by the Securities and Exchange Commission but Republic may still capture indications of interest.
The Republic Note has been in the works for quite some time. Crowdfund Insider spoke to a person with knowledge on the process a year ago and they explained:
“User engagement and community building has seen a notable increase. It [has] given Republic the platform and the forum to engage our user base, and encourage them to join the mission and spread the message of entrepreneurship and investment for all. Republic is working on new perks and additional benefits to keep participants engaged.”
To quote Republic:
“The Republic Note, created by Republic Core, brings our vision to life. It’s a new kind of asset that shares profits when startups and private equities that raise with Republic later sell or go public. By launching the Republic Note we’re taking an important step in the right direction and playing our part in shaping the investing landscape of the future. Thank you for your continued support every step of the way, and on the new journey now before us.”
Republic was launched as a Reg CF funding portal with a focus on underserved communities. Since launch, Republic has added a variety of services including Republic Crypto, a real estate vertical, and a game funding platform (via the FIG acquisition).
Expect more features and services going forward.
The current Republic Note White paper may be viewed here.
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