Binance Leads $12 Million Investment In AngelList Crypto Spin-Off Republic

Revealed exclusively to CoinDesk, Republic, a crowdequity platform that can help ICO issuers manage token sales that was spun out of AngelList, has raised $12 million in commitments for a token presale.

Looking ahead, the initial raise is part of Republic's interest in ultimately raising as much as $92 million total selling its crypto token, with a yet to be announced public sale.

According to Republic co-founder Kendrick Nguyen, the token will be used to incentivize users to take an active interest in their investments, by allowing Republic to potentially provide access to ICO deals and offer a share in the revenue earned by the company as it grows.

Republic is designing its security token to do the same.

"Republic brings new investment opportunities for retail investors to participate in well-curated startups," Ella Zhang, head of Binance Labs, wrote CoinDesk in an email.

Still, none of the investors have their Republic crypto tokens just yet.

Those will come when Republic drops the white paper for its ICO. But, what is known shows that Republic is getting creative with its fundraising model.

As the name suggests, the model combines elements of two earlier funding structures - the SAFE and the SAFT. Here's how the SAFEST works: when the token is ready, pre-sale investors will have the option to take their full investment in tokens or up to 20 percent of their investment in equity.

If for some reason Republic fails to launch the token, investors can convert all their investment into equity.

"One thing a lot of people don't know about Stellar is their impact driven mission," Nguyen said, arguing that the project's team prioritizes inclusiveness and diversity - values that could be key as Republic makes its platform a kind of meeting place for any type of investor interested in backing new companies worldwide.