On December 6, investment company Republic plans to list Republic Note, its digital security token, on the INX trading platform. With access to Republic’s venture portfolio, the move, which makes use of the Avalanche blockchain, represents a significant shift in private equity investment.
Almost 750 private businesses in the Web2 and Web3 industries are included in this portfolio; well-known brands include SpaceX, Dapper Labs, and Carta. The goal of this diversified portfolio is to reduce risk while offering investors the chance to earn competitive returns.
Republic’s coin uses a special profit-sharing scheme. Profits generated from a liquidity event—like a dividend payment—that a portfolio firm experiences go toward a Republic Note dividend pool. Note investors receive rewards in USDC directly into their digital wallets after this pool reaches the $2 million threshold.
By balancing the interests of investors and the underlying companies, this structure promotes long-term value development and a sense of shared ownership.
The Republic Note will feature low investment minimums to further improve accessibility, which will draw in retail investors who might not have the funds to invest in private businesses through conventional channels.
Co-founder and CEO of Republic Kendrick Nguyen sees the Republic Note’s IPO as a paradigm shift in private equity, not just a business achievement.
The token has already attracted a lot of attention and raised over $30 million in a private sale from investors as well as organizations like the Avalanche Foundation and Binance.
Republic has made more than $2.6 billion in investments in privately held businesses since its founding in 2016. The company was one of the first to use regulated crowdfunding to let private businesses receive money from unidentified investors.
An important development for the Republic and a step toward democratizing access to private equity investments is the impending listing of the Republic Note.
Republic is enabling people to take part in the development of new ventures and maybe profit from them by utilizing blockchain technology and creative token structures.