ByteDance, a Chinese firm that operates TikTok, CapCut, and Douyin, is the operator of some of the most popular social media verticals in the world. Republic is offering access to ByteDance’s growth via a Mirror Token, which aims to match the valuation of ByteDance’s equity.
Republic, and Republic Europe (Mirror Notes) have been at the forefront of expanding access for smaller investors to private securities typically only available to VCs, insiders, and big money. The company has launched a vehicle where smaller investors may invest, potentially in advance of a public offering.
Republic launched Mirror Tokens in the US and Mirror Notes in Europe earlier this year on its investment platform.
The ByteDance offer, for rTTOK, holds a minimum investment of $250 with a “reference valuation” of around $400 billion. In August, ByteDance pursued a share buyback program at a valuation of $330 billion.
On Republic Europe, only £20 is needed to participate. Currently, the offering page indicates that 342 investors have committed over £769,000.
While the US offering is said to close today, the Republic Europe offering page indicates that about two weeks remain in the offering.
When the US portion of TikTok is spun off, ByteDance will keep a minority ownership stake of under 20%. At the same time, ByteDance is also expected to receive about 50% or more of the US profits through an algorithm licensing fee and its equity share, as things stand today.
Republic notes that following the acquisition of INX, secondary trading may soon be available in the US. Republic Europe (previously Seedrs) has long had a secondary trading marketplace.
Interest in private securities has risen globally. Meanwhile, public shares have declined. Providing greater access to this asset class, especially for more mature firms, is creating value for Republic users.
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