February 12, 2020
Once an individual applies to be considered as an issuer, platforms’ team reviews the applicant to determine his/her adherence to the standards and validity of the credentials.
HumanIPO and approved issuer finalize the details of current and any possible subsequent offerings: total offering size, initial offering size, pre-placement duration, minimal amount per hour, and the term sheet. We currently limit the maximum lifetime offering size at 500.
Once potential investor reviews and agrees with the offering, she or he can buy human equity in the pre-placement offering. The issuer sets the price of human equity as the per hour rate.
Once pre-placement is complete, all of the order books participants will receive the human equity proportional to their invested amount. The following day they can start trading their human equity or redeem it for the issuer time.
Once the holder of human equity indicates on the platform the desire to exchange the human equity for the issuer time, an issuer has to respond within 72 hours to propose several mutually acceptable time slots. The platform will facilitate communication and collect feedback from the holder once the exchange has happened. Positive and negative feedback on using the issuer’s time will be used to keep the Social Score of the issuer on the platform. The initial score is 85 and will be adjusted up or down per point per redeemed hour.
Once funds are collected, issuer is entitled to receive the collected funds, less 6% of placement fee (for initial and subsequent placements) and less 4% platform listing fee (paid once per issuer). Collected funds are held in special escrow account and could be allocated to the issuer if both of the following are true:
If score goes below 90, issuer will have 90 days to get the score above 90 to get the next tranche of funds. If issuer’s score is below 90 and no redeemable human equity left, or if issuer fails to get the score above 90 within 180 days, the remainder of the escrow amount will be distributed back to the last registered owners of the human equity.
The Placement process was last updated on February 12th, 2020.