Get the Note - a digital token by Republic, a US company backed by Binance & Neo

[Fenomenon]

How it works?

The Token DPA sets a time limit for how long a company can hold the funds before paying interest or repaying the debt in tokens. The Token DPA encourages companies to use their funds slowly by giving investors the right to request them back. If the company does not retain the funds then they may become insolvent and will eventually fold. If investors do not request their funds back and never receive their tokens then they can earn interest on their principal. If the company completes its goals, they can repay the debt in tokens, effectively allowing investors to purchase them at a substantially discounted price.

[Heddion]

The Token DPA’s terms can be modified to meet projects’ specific needs, allowing the loan to be paid back in cash or Tokens. For example, you can give your project breathing room by pushing back the date interest accrues. To reward early supporters, you can also ensure investors get preferential pricing on tokens if a token distribution event ever occurs. To make the Token DPA a more flexible instrument than the SAFT, the Token DPA can grant investors (instead of the company) the choice to have all or part of their monies refunded before the loan is paid back. There is no guarantee a company will have the funds to return a investor’s principal, purchasing a Token DPA can result in a total loss.

[Jon Winston]

In the event the start up folds due to insolvency, Token DPA holders may not receive tokens or cash back, but as debt holders they would be entitled to any available assets over equity or SAFT holders, during a dissolution of the business, generally.

[Larion Drake]

In the event the start up folds due to insolvency, Token DPA holders may not receive tokens or cash back, but as debt holders they would be entitled to any available assets over equity or SAFT holders, during a dissolution of the business, generally.

A Token DPA can have a hard cap on the time period money may be borrowed in, ensuring that investors’ capital isn’t contributed to a project that won’t materialize within a set period of time.

Companies can customize the Token DPA to include repurchase rights as well as allow for refinancings. Depending on the terms of a company's Token DPA, investors should be aware that repayment in cash or tokens may result in no return.

[Miriam WolfStavish]

Even as development in the blockchain space is accelerating rapidly, existing regulations make it a risky proposition for token issuers to let everyday people participate in their pre-sales, leaving most people out. Previously, if you weren’t a US accredited investor – meaning you didn’t meet a high income/net worth threshold (3% of the US population), you couldn’t legally participate in public crypto-assets offerings pursuant to Rule 506(c) - also known as Reg D or an advertised private placement. We created the Token DPA, an instrument appropriate for investment crowdfunding, to help change that.

Anyone 18 or older can purchase the Token DPA through a Republic Crypto offering — American or international citizens, accredited or non-accredited investors and even certain types of entities.

[Neverlessyou]

Token DPA — an interest bearing loan that can be converted to tokens
When you join a project on Republic Crypto, you typically receive a security called the Token DPA (Debt Payable by Assets) from the company you loaned money to.

As a loan contract between you and a blockchain startup, the Token DPA is the right to receive interest on your loan or have your loan paid back in the future with the token. The ability to have your loan paid back in tokens is contingent on a trigger event, meaning you will not receive tokens unless a token distribution event occurs.

[republic.sup]

What kind of startups are accepted to raise?

Only U.S.-based companies are accepted (you have to be incorporated in the US)
Only companies that pass the criteria of our investment committee  https://republic.co/learn/investors/how_we_select_startups
More criteria listed here https://republic.co/learn/issuers/who_can_raise

Thanks for the answer. Yes, you are right and thank you for linking to the resource.

[republic.sup]

How does the waitlist work?

If the campaign reaches the maximum goal, no more investments can get accepted and all following investment commitments get added to the waitlist.

If one of the earlier investors decides to cancel or doesn’t fund their investment in time, the first person with the matching or lower desired allocation on the waitlist will get their spot.

For example, If space opens up for $1,000 and your waitlisted investment is $1,500, you won't get in, but the person behind you with a $900 waitlisted investment will get in, and the next person with a $100 waitlisted investment or less will get in as well.

[trimpo]

The Token DPA allows investors to earn interest on the money they lend blockchain companies. With the value of principal of the loan rising due to interest and a promised discount on tokens, investors who hold a Token DPA can receive an advantaged rate on Tokens after a period of time, token distribution offering occurs and the company uses the money responsibility.

Companies provide check-points when investors can request to be paid back, in cash. It should be noted that payment can only be made if the company has retained assets sufficient to service the debt or made money.

[VeloCHARAPtor]

Can I sell or transfer my Token DPA?

[VincentoDoraimon]

Can I sell or transfer my Token DPA?

You are limited from selling or transferring your Token DPA for the first 12 months, unless selling back to the company, accredited investors and the like. See general selling restrictions. Additional restrictions may apply for Canadian investors.1

[DivinityEgo]

Can I sell tokens I receive through the Token DPA?

[DonyTramp]

Can I sell tokens I receive through the Token DPA?

If the tokens are utility tokens, they should be freely tradeable, regardless of when you receive them. However, if tokens are considered securities tokens, they may only be tradeable pursuant to the general selling restrictions. Additional restrictions may apply for Canadian investors

[Fenomenon]

Is there a limit on how much I can raise?

[Heddion]

Is there a limit on how much I can raise?

Yes. The SEC limits companies to raising $1,070,000 via Title III equity crowdfunding per rolling 12 month period.

[Jon Winston]

What is the typical campaign duration?

[Larion Drake]

What is the typical campaign duration?

Republic campaigns usually last 30-60 days. If you need to run a campaign for a longer time, please let us know.

[Miriam WolfStavish]

What are the key components of preparing for my campaign?

[Neverlessyou]

What are the key components of preparing for my campaign?

The Form C, you should use iDisclose to form the basis for it.
Once you finish in iDIsclose, an attorney can review your draft for $1,500 and help you file it with the documents below, or you can use your own attorney.

[trimpo]

Finances, ensure that your financial statements, for the last 2 fiscal years are GAAP compliant. If you need assistance, we recommend using Kristine Rasmussen from Assure (krasmussen@assure.co) to prepare them in GAAP.
Once that is complete, please have your financial statements reviewed by a 3rd party CPA. We can introduce you to once if need be - note this is only for campaigns raising over $107,000.

Deal Page, you should start working on your offering page, remember we have templates on your onboarding page.