Dear BVP Community,
Today, we're diving into an exciting investment opportunity: Republic Note. This digital security is raising on Republic, a platform offering equal access to invest in high-growth private investment opportunities.
At Bison Venture Partners we’re educating 10,000 new Angel Investors over the next decade in our mission to build generational wealth with our community. Why? Because investing in privately-held businesses has historically been a proven wealth-building strategy for elites, but the rules have changed, and it’s never been easier for everyday people to do the same.
If we’re going to close the racial & gender wealth gaps that exist today, we must leverage innovative opportunities to do so.
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Disclaimer
Please read this investment disclaimer carefully before considering any investment discussed in this newsletter or any other material provided by Bison Venture Partners.
The information and opinions presented in this newsletter are for educational and informational purposes only and should not be construed as investment advice, an offer to sell, or a solicitation of an offer to buy any securities or financial products. The opinions expressed in this newsletter are those of the authors and do not necessarily represent the opinions of Bison Venture Partners.
Investing in securities, including private companies and crowdfunding opportunities, involves significant risks, including the potential loss of the entire investment amount. Investments should only be made by investors who are financially able and willing to bear these risks. The information provided in this newsletter is not intended to be a comprehensive analysis of any investment opportunity, and investors should conduct their own due diligence before making any investment decisions.
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Deal Summary
Republic Note is currently raising funds on Republic's platform. This unique digital currency acts as a profit-sharing instrument for investors within the Republic ecosystem. With a finite supply, Republic Note offers investors a share in the profits when certain Republic portfolio companies achieve success. When a company that Republic has invested in reaches an exit, a portion of the cash proceeds is allocated to Republic Notes. Distributions are made to note holders once the accrual reaches $2 million. The total supply of Republic Notes is 800 million, with an initial circulation of 330-350 million at launch. Republic was founded by Kendrick Nguyen, Paul Menchov, and Peter Green in 2016. The ongoing crowdfunding campaign has set a minimum target of $360,000 and a maximum target of $2.02 million. Funds raised through the campaign will be utilized for operational expenses.
About Republic Note
Republic Note is designed to empower the Republic community members by allowing them to share in the financial upside of its portfolio companies and be rewarded for their engagement within the Republic ecosystem. With over $755,349 raised so far, reaching 210% of its minimum goal, and 777 investors onboard, you might be wondering: "Should I invest in Republic?"
Let's explore the key aspects of this investment opportunity:
Notable Backing: Republic is backed by a notable angel investor and a Tier-1 VC firm, offering credibility to the company.
Economic Benefits: Republic Note grants holders the right to the economic upside of two major pillars of the Republic ecosystem - Republic Capital and Republic Retail. When Republic realizes cash proceeds from these positions, portions of those proceeds accrue in a Dividend Pool, which will be distributed to Republic Note holders on a pro-rata basis.
Community Benefits: Republic Note holders gain access to exclusive community forums, experiences, and incentives for engaging with different areas of Republic. This includes priority access to events, webinars, and educational seminars.
Strong Technical Foundation: The Republic Note leverages blockchain technology, ensuring transparency, flexibility, and security. It's also offered under Reg CF, requiring Republic Core to file an annual report for added transparency.
Impressive Traction: Republic has facilitated over $600 million in investments through the end of 2022 and has deployed capital into more than 120 syndicates.
Diverse Portfolio: Republic has helped over 350 businesses raise capital across various industries, offering exposure to a diverse range of companies.
With a vision of equal access and opportunity, Republic has made it possible for anyone to participate in the growth and success of visionary companies. If you're considering investing in Republic Note, keep in mind that private investments are risky and illiquid. Consult with your trusted advisors and do your own due diligence before investing.
10 Questions To Ask Yourself Before Investing
Do I believe in the long-term potential of Republic's mission to democratize investment and ownership opportunities for everyone, everywhere?
Am I confident in the company's track record, including the growth of Republic Capital and Republic Retail and their portfolio of investments?
Do I trust the strategic, blockchain, and legal engineering behind the Republic Note, and its ability to serve as the connective tissue of the Republic ecosystem?
How do I feel about the potential economic benefits, such as sharing in the upside of Republic's select portfolios and the dividend distribution model?
Are the community benefits, such as exclusive access to events, webinars, and social gatherings, valuable to me as an investor?
Am I comfortable with the technology behind the Republic Note, including its use of blockchain technology, smart contracts, and stablecoin support?
Do I have faith in the management team and the strategic backing from notable angel investors and tier-1 venture capital firms?
How does this investment fit into my overall investment strategy and risk tolerance, considering that private investments can be risky and illiquid?
Am I satisfied with the level of transparency and regulatory compliance provided by Republic Core, including annual reporting requirements as a security regulated under US securities laws?
Do I understand the potential risks associated with investing in Republic Note, and am I willing to accept these risks in exchange for the potential benefits and returns?
Why You Should Not Invest in Republic Note
Illiquidity: As with many private investments, Republic Notes may not have an easily accessible secondary market, making it challenging to sell your investment if you need to liquidate your position.
No Guaranteed Returns: While Republic Note offers profit-sharing, there are no guarantees of returns or dividends, as they depend on the success of Republic's portfolio companies.
Portfolio Company Risk: Investing in Republic Note exposes you to the performance of various early-stage startups in Republic's portfolio, which can be inherently risky and unpredictable.
Regulatory Risks: Changes in the regulatory landscape could affect the value or viability of Republic Notes and their profit-sharing mechanism.
Limited Voting Rights: Republic Note holders may have limited voting rights, reducing their influence over company decisions and operations.
Competition: Republic operates in a competitive market, and competing platforms or investment opportunities could impact the value and success of Republic Note.
Economic Downturns: A broader economic downturn could negatively affect the startups in Republic's portfolio, leading to reduced returns for Republic Note holders.
Dependence on Republic's Success: The value of Republic Notes depends on the continued growth and success of Republic as a platform, which may face its own challenges and risks.
Technology Risk: The use of blockchain technology for Republic Notes could expose investors to risks associated with the technology, including potential security vulnerabilities or reliance on third-party providers.
Dilution: Future issuances of Republic Notes or other securities could dilute the value of your investment, reducing your potential returns from profit-sharing.
Why You Should Invest in Republic Note
Diversification: By investing in Republic Note, you gain exposure to a diversified portfolio of early-stage startups on the Republic platform, spreading risk across multiple ventures.
Profit-sharing Potential: Republic Note offers profit-sharing, enabling investors to benefit from the success of Republic's portfolio companies when they achieve an exit event.
Access to Private Investments: Republic Note provides a unique opportunity for retail investors to participate in private investments, which have traditionally been reserved for institutional investors or high net worth individuals.
Alignment of Interests: Republic's own success is tied to the performance of its portfolio companies, aligning the interests of the platform with its investors.
Track Record: Republic has a history of successfully curating and funding promising startups, demonstrating its ability to identify and support companies with growth potential.
Democratization of Investing: Republic Note is part of Republic's mission to democratize access to startup investing, making it an opportunity to support an inclusive and innovative platform.
Fintech Innovation: Republic Note leverages blockchain technology for secure and transparent profit-sharing, showcasing Republic's commitment to using technology to advance the financial industry.
Strong Founding Team: Republic's founders have extensive experience in finance, law, and technology, which increases the likelihood of the platform's continued success.
Scalability: As Republic's platform continues to grow and attract more high-quality startups, the potential for profit-sharing with Republic Note holders could increase.
Social Impact: By investing in Republic Note, you are supporting a platform that empowers underrepresented entrepreneurs, driving positive social change through the growth of diverse startups.
Key Terms to Understand
Digital Security: A digital representation of a financial asset or instrument, such as stocks or bonds, which are issued and managed on a blockchain or other digital platform.
Blockchain: A decentralized digital ledger that records transactions across multiple computers, ensuring transparency, security, and immutability of the data.
Angel Investor: A high-net-worth individual who provides capital to startups or entrepreneurs, typically in exchange for ownership equity or convertible debt.
Venture Capital (VC) firm: A company that invests in startups and early-stage businesses with high growth potential, providing capital in exchange for equity stakes and typically playing an active role in guiding the company's development.
Accredited Investor: An individual or institutional investor who meets certain income or net worth thresholds, allowing them to invest in private securities offerings not registered with the SEC.
Dividend Pool: A pool of funds that accrues from realized cash proceeds from Republic Capital or Republic Retail's positions, which is then distributed to Republic Note holders on a pro-rata basis.
Stablecoin: A type of cryptocurrency that is designed to maintain a stable value by pegging it to a reserve of assets, such as a fiat currency like the US dollar, a commodity, or another cryptocurrency.
Know Your Customer (KYC) / Anti-Money Laundering (AML): Regulatory requirements that financial institutions must follow to verify the identity of their clients and prevent money laundering or other illegal activities.
Securities and Exchange Commission (SEC): The US federal agency responsible for regulating the securities industry, including enforcing securities laws and protecting investors.
Regulation A+ (Reg A+): A securities exemption under the JOBS Act that allows companies to raise capital from both accredited and non-accredited investors through a public offering, subject to certain eligibility and disclosure requirements.
Regulation Crowdfunding (Reg CF): A securities exemption under the JOBS Act that allows startups and small businesses to raise capital from the general public through a registered funding portal, subject to certain limits and requirements.
Due Diligence: The process of researching and evaluating a potential investment, including assessing the financial health, management team, business model, and competitive landscape of the company.
Illiquid: An asset that cannot be easily converted to cash or sold without a significant loss in value. Private investments, such as the Republic Note, are often considered illiquid due to the lack of a secondary market and restrictions on the transfer of ownership.
Conclusion
It’s essential to carefully weigh the pros and cons, assess your risk tolerance, and consider your investment goals before deciding whether or not to invest in Republic Note or any other investment opportunity. If you need further assistance, it's always a good idea to consult with a financial advisor.
If you're intrigued by Republic Note and want to learn more, head over to their campaign page on Republic, where you can view their pitch, discussion, updates, and reviews: https://republic.com/note-2023
Don't forget to share this newsletter with friends and colleagues who might be interested in learning more about Republic Note. If you enjoyed our review of this investment opportunity, don’t forget to subscribe to our newsletter and follow us on all socials @bisonvp (Instagram, Twitter, LinkedIn).
Thank you!
Garry Johnson III
Bison Venture Partners
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