This post is Part I of a two-part series on Republic Crypto. In Part I, we’ll discuss our offerings for early-stage blockchain companies. Part II will discuss our offerings for more mature blockchain companies.
2017 was the year emerging blockchain startups disrupted the traditional VC model. Instead of fundraising from institutional investors, many blockchain startups issued tokens to raise working capital. These sales relied heavily on ‘white papers’ that lacked a proof-of-concept and offered investors little security that the project would actually be built.
Today, the second wave of blockchain companies are building their vision of the future, but more and more they need to raise capital to see these projects through. At the same time, people around the world want to invest early in the next generation of breakthrough technology companies. With a vision of increased liquidity, regulatory strength, and a seamless online product, we launched Republic Crypto to connect blockchain startups needing capital with ready investors.
Our most recent early-stage blockchain offering, Witnet, is an important milestone in realizing this vision. Witnet opened for public sale on March 2nd, 2018 and raised the maximum $1,070,000 in less than 4 days. Facilitated by the Token DPA, a financial instrument created and open-sourced by Republic; retail investors have provided Witnet the capital needed to hire a team of engineers and build their protocol.
Here’s how this offering works for blockchain companies and investors alike.
FOR BLOCKCHAIN STARTUPS –– WHY RAISE WITH REPUBLIC?
Raising early capital in exchange for tokens is an exciting and, we believe, worthwhile venture. But many early-stage blockchain companies face a catch-22: they need money to develop their minimal viable product but simultaneously lack a product developed enough to justify a public token sale.
Republic Crypto addresses this problem through the Token DPA which is a financial instrument for early stage blockchain startups to prepare and execute project development. On the flip side, it allows the general public to invest and earn a return in cash or future tokens if the project is successful.
Republic’s Token DPA draws from our experience in equity-focused capital raises. Our platform has given startups the opportunity to engage their community, early adopters, and new users using the Crowd Safe instrument. We’re leveraging our expertise in equity-driven investing to expand our offerings to an exciting ecosystem of blockchain and cryptocurrencies.
FOR INVESTORS –– WHY INVEST WITH REPUBLIC?
Republic Crypto’s offerings present the opportunity for everyone to invest in blockchain startups, not just angel investors and established venture capital firms. It’s a chance for anyone around the world 18+ to fund next generation of potentially breakthrough technology.
Our Token DPA product allows investors to loan capital to blockchain companies with the chance to earn a return in cash or in future tokens. Investors can bet on the success of blockchain companies and potentially share in their success.
There’s no way to eliminate the risk of losing investments. We hope, however, that our Token DPA sets a higher standard for blockchain startups looking to raise capital by encouraging effective risk management for retail investors. This happens primarily by providing investors the means to request a full or partial cash refund if the company does not hit its project development goals.
At Republic, we’re excited to apply our equity-focused expertise to the world of blockchain and cryptocurrencies. We’re inspired by blockchain technology’s democratizing power and want to further this movement with our platform, where everyone can make investments alongside the most prominent names in Silicon Valley.
We’re also looking forward to empowering early-stage blockchain startups with a platform to raise pre-public token sale capital, with special attention to regulatory and compliance requirements that can make or break a project. By securing this initial capital, companies can build a marketable product to raise more funds with a larger token sale––and on more than “just a whitepaper.”