Cryptoindustry has long been a testing ground for collective funding initiatives. Although previous models, such as the Initial Offer of Coins (ICO) and the Initial Offer of Exchange (IEO) have attracted regulatory scrutiny (and occasional founder scrutiny on questionable grounds), some companies refuse to give up the idea that cryptomonies and collective financing are compatible.
One such platform is Republic, which uses its Crypto Trader technology to offer accredited investors the opportunity to share in the profits of their own portfolio of start-ups when (and if) the companies in which they invest are successful.
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Virtuous circle of investment
The Republic Note is the recipient of this unusual model, which aims to create a virtuous circle for investors: a successful capital investment by the Republic collective financing platform leads to dividends, interest or a liquidity event, which is then shared among Republic Note holders, who may be tempted to invest in future capital offerings.
Republic maintains both a private placement platform for reputable investors, and a public financing platform open to everyone with a minimum of USD 20 to invest.
Each platform pays a portion of the income generated above a threshold to Republic Core, which then distributes it to Republic Note holders.
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Republic co-founder Kendrick Nguyen told Cointelegraph that „92.5% of U.S. citizens are excluded from the best deals of our time, like the early Facebook and Google. The best businesses are traditionally accessible only through private investment. In fact, global private capital has grown twice as fast as public markets over the past 20 years. The Republic platform solves this problem by using our expertise and network to identify some of the most promising emerging companies and private capital and present them to investors who might not otherwise have access.
Perhaps the diligence of the solution is not surprising, given that Nguyen himself used to be a General Counsel at AngelList, and that Naval Ravikant is an advisor to the business.
„Ultimately, we have always been interested in pushing the boundaries of private investment innovation,“ explained Nguyen. „We have moved into new verticals such as real estate and gaming, we have offered cutting edge products, and Republic Note, digital security profit sharing is the next big thing.