Crowdfunding platform Republic launches Note profit-sharing token

A crowdfunding platform that has previously raised funds for the popular investing app Robinhood is launching a profit-sharing token.

Plans for the Republic Note were first announced in April 2019, and a token sale is scheduled to commence on July 16. Each Note is going to be sold for $0.12, and an $8 million cap on sales is going to be in place.

A glitzy video released by Republic says the note allows anyone to “invest in tomorrow’s greatest minds and their brilliant creations, and succeed when they succeed.”  

The token proportionately distributes the profits that are generated when startups that have raised money through the Republic platform are acquired by another company or go public.

‘Democratizing private investing’

In the white paper for the Note, Republic said its determination is to democratize private investing, as the world of startups is currently “risky and inaccessible.”

The document explained: “Simply writing a check into a friend’s or a relative’s business is an antiquated and inefficient way of participating in the venture ecosystem. For the first time, the Republic Note enables anyone, anywhere to have indirect upside exposure to Republic’s success in helping to finance a growing collection of rigorously vetted companies, many of which have the backing of the best venture capital firms in the world.”

Tokenizing the investment participation also has the benefit of making clear how the company is making money—by gaining investors and through the price of the note token itself. Republic estimates suggest that 310 million to 370 million tokens are going to be in circulation in launch, out of a total token supply of 800 million. It will operate on Algorand.

Perks to take Note of

According to Republic, those who hold notes will unlock several other advantages beyond sharing the profits of successful ventures.

Owners of this token are set to be notified first when new deals emerge on the Republic platform, and they will be given the opportunity to invest in startups after they have sold out.

In a bid to encourage further investment, vouchers will be offered as a bonus to note holders—and they’ll also be given access to quarterly brainstorming sessions with the Republic team, along with exclusive tickets to startup events.

A two-tier platform

Revenues are going to be distributed to Republic Note owners whenever proceeds exceed $2 million in total—but payouts may also be activated underneath this threshold.

To entice as broad a base of investors as possible, Republic offers two tiers for users. A private platform is designed for accredited investors and high net worth individuals who have more than $25,000 in capital, while a public platform is open to anyone with a minimum of $20 to invest.

Republic Note itself has received extensive amounts of financial backing in advance of its launch—including from Binance and Algorand.

The company claims that it has played a starring role in the launch of more than 160 startups, and that it now boasts more than 700,000 members worldwide. When it comes to the crowdfunded capital, more than 50% has been invested in female entrepreneurs, and other underserved members of the business community.