What Is Happening?
Coinbase-backed Portal announced its Reg D equity offering through the Republic platform to raise capital from 1,900 investors across the globe for its equity offering. Portal is a cross-chain Layer-2 DEX network that is being built on Bitcoin and is raising capital on Republic, a private equity-based investment platform that lets anyone invest in vetted startups from different industries such as AI, Blockchain and Crypto.
The Layer 2 and Layer 3 technology of Portal allows the development of censorship-resistant communications, media and cross-chain swaps with a single click, all on Bitcoin. The sale to the public started on Monday, July 18.
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What is the Portal Platform?
Portal Defi is a decentralized financial platform that combines the most advantageous aspects of Bitcoin and Layer 2. With Portal, decentralized finance becomes uncensorable, peer-to-peer and little dependent on trust. Similar to Bitcoin's fundamental features. It makes trading unstoppable with anonymous, zero-knowledge swaps through the first trust-minimized cross-chain DEX. It removes the necessity for minting wrapped currencies such as wBTC and wETH and dangerous staking via intermediaries.
What is a Reg D Equity offering under US laws?
Regulation D of the Securities Act offers a variety of exemptions from the registration requirements, enabling some entities to offer and sell their securities without registering with the SEC. According to the SEC, offerings of securities under Rule 504 or 506 of Regulation D or Section 4(a)(5) of the Securities Act of 1933 are exempt from the registration requirements of the Securities Act of 1933. However, the issuing company must submit the required notice to the SEC.
According to the SEC, businesses that meet the criteria of Regulation D are exempt from the need to disclose their offering of securities with the SEC. When their securities have been sold for the first time, they should digitally submit a "Form D" with the SEC. The names, addresses, and contact information of the company's promoters, executive officers, and directors are all that are required to be included in Form D, along with a few data regarding the offering.
How is Republic Disrupting the Private Equity Market?
Republic is the private investing platform utilizing web3 technology such as blockchain and security tokens for investors seeking high growth potential. Republic identifies private investment opportunities with strong growth potential in the startup, gaming, real estate and cryptocurrency industries. The platform provides an avenue for accredited and non-accredited investors to meet entrepreneurs and access private market projects with great development potential.
It is important for investors to note that Reg D offerings are generally only open to accredited investors. However, technically, up to 35 non-accredited investors may participate. They simply need to show financial expertise and business acumen. Further, according to Republic, their vetting process only permits just 3 percent of startups to fundraise on their platform.
The general public will be able to participate in an ambitious project creating DeFi on top of the Bitcoin blockchain via the stock offering. The equity offering being conducted by Portal is a safer and secure avenue for investors, considering that the offering is being held in the US. It is critical for investors and companies alike to comply with SEC regulations and crypto companies such as Portal taking this initiative may start a new era of fundraising for blockchain startups.
Final Thoughts on Portals Equity Offering on Republic
Portal’s equity offering on Republic reflects that the trend for blockchain startups and the blockchain industry is a net positive. Companies are raising capital and building protocols and technology applications for the future, which may disrupt existing businesses and their business models. Further, it looks like equity offering under Reg D in the US is gaining traction again as a mode of raising finance for blockchain startups.
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Image credits: Austin Distel and Jeremy Bezanger.
