The Republic Note which goes on sale next month has a funding cap of $8 million. The asset is expected to be issued on the Algorand blockchain.
Republic, a crowdfunding platform, has announced that its profit-sharing asset will go on sale July 16, 2020. According to the release, Republic Note is a digital asset that gives investors the privilege of sharing in the company’s profits.
The Republic Note which goes on sale next month has a funding cap of $8 million. The company said that investors have been categorized based on whether they have been accredited or not. The security offering segment of the sale is strictly for accredited investors who can apply for the Reg D 506c segment. Non-accredited investors can partake in the offering through the Reg A+ offering.
Democratization of Private Investment with Republic Note
Republic generates profits when the startups it helped kick off go public. This additional income for the company is predetermined based on carrier interest and commission. The move by the company to introduce the assets gives all categories of investors the opportunity to profit in the company’s profit-sharing scheme.
Republic Note is available for investors in the U.S. and other countries. The pro venture capital company announced that the offering is in line with its democratization mission for private investment. Retail and corporate investors who purchase the asset would share in the company’s profit when its gains are in excess of $2 million.
The asset is expected to be issued on the Algorand blockchain. Another version based on the Binance Chain is expected sometime later. The total circulating supply for the Republic Note is 800 million.
Regulatory Hurdle
The release by the company stated that remuneration of investors will be based on the class of investment. Insider information said that the Reg A+ is yet to be approved by the Securities and Exchange Commission (SEC) however, the company is confident that this would not debar capturing indication of interest from investors. The portion of the statement seen by this reporter stated:
“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.”
Republic announced that the Note created by the company brings its vision of profit sharing to life. The asset which it termed “a new kind” would help make gains for participating investors when startups go public down the line.
This is a step towards shaping the investment landscape, according to the company.
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