What you get when you invest
When you invest through Republic’s ecosystem, you provide capital in exchange for a financial stake in a company, fund or project. That financial interest is bound by an agreement between you and the issuer, or a company, fund or project raising money. The official term for this agreement is a security. Securities can be offered under various registration exemptions such as Reg CF, Reg A+, Reg D and Reg S.
Below are the various types of investments on Republic and the relevant securities:
Equity
In startup investing, an individual can provide capital to a company in exchange for a piece of ownership in the company or what’s referred to as equity.
- On Republic, equity in a corporation might be offered through a Crowd Stock Purchase Agreement (Crowd SPA)
- Equity in a limited Ownership in an LLC can be expressed by percentage ownership interest or membership units. A membership or partnership interest may be represented by a Crowd IPA or represented by the admission of the investor's name to the LLC to a ledger, and no certificated security instruments may be issued to membership interest holders.
Future equity
This is a financial interest in the company that may provide the right to equity or a cash equivalency at a future time.
- The security you receive is called the Crowd SAFE. SAFE is an acronym that stands for "Simple Agreement for Future Equity” and it does not mean it is a safe investment.
Digital assets
Digital assets are intangible assets that are created, issued, traded, and stored in a digital format. In the context of digital assets on a blockchain, digital assets include but are not limited to cryptocurrencies and crypto tokens. Digital assets may provide a return if the token is developed, delivered, and then gains value based on market demand or utility.
- A Token Debt Payable by Assets (Token DPA), is an interest-bearing loan payable in tokens or cash in the future. A Token Purchase Agreement (TPA) is not equity, debt, or a token itself, but a contract that entitles you to tokens in the future.
Debt
An investor can lend money to the company with the expectation that the borrower will pay back the investment with interest. This is referred to as debt.
- Crowd Term Notes may provide scheduled payments based on the amount lent to the issuer and the agreed-upon interest rate.
Revenue share
Revenue shares are a type of private investment where you share in profits without ownership and earn passive income.
- Crowd Revenue Notes may provide payments based on an issuer's revenue flow, up to a certain maximum.
Other hybrid securities
- Initial Litigation Offerings
- Music where fans and investors may receive an S-NFT*
*"S-NFT” or “Security-Non-Fungible Token” is a new term, developed by Republic to describe a non-fungible digital asset offered and sold as a “security”, as defined by the Securities Act of 1933 and the Exchange Act of 1934 (the “Securities Acts”). Blockchain technology is a rapidly expanding and changing area that is effected by the Securities Acts as well as state, federal and international law. Republic intends for offerings of S-NFTs to be conducted pursuant to exemptions from registration under the Securities Acts as facilitated by members of the Republic ecosystem. S-NFTs are a work in progress and therefore Republic and each Issuer of S-NFTs reserve the right to re-characterize the digital asset. Please review the terms, conditions and offering disclosures regarding an offering of S-NFTs for a full description of their characteristics, including but not Iimited to economic rights, fungibility, purchase and trading restrictions and the underlying technology of each S-NFT offered. Investments in private securities are inherently risky, illiquid and subject to a total loss of capital.
