Placement process

1. Due Diligence

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.

2. Issuance Details Definition

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.

3. Pre Placement Review

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.

4. Placement

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.

5. Human Equity Redemption

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.

6. Fund distribution to the issuer

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:

The amount and timing of the funds is in line with terms mentioned in the term sheet.
The Social Score of the issuer is above 90.

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.

Frequently Asked Questions

What is HumanIPO?

HumanIPO is a human equity exchange for human shares backed by time of issuers.

What is human equity?

Human equity is a financial asset that derives its value from personal achievements of an issuer. Human equity are based on the most finite resource individual has – his or her time. Each unit of human equity grants a holder of the asset one hour of time of the issuer.

What is the valuation mechanism of human equity?

Value of human equity is driven by the classical supply and demand for the hour of time of issuing individual. The demand is driven by the personal achievements of the individual – the more successful issuer is, the more in demand his or her time will be. The supply is driven by the human equity outstanding on the marketplace – human equity is destroyed once it has been used, and human equity could be bought back and destroyed by the issuer.

What are the market appreciation opportunities for human equity holders?

Human equity grants immediate access to the issuer of this asset. Therefore if someone needs to have access to the high-impact individuals - founders, CEOs, VCs – one can come to the platform, find the individual of interest, buy the respective human equity from existing owners, and exchange for a predetermined amount of time.

You can benefit in two ways: financially and personally. Let's say you buy two hours of promising entrepreneur at $100 an hour. In 5 years, her company becomes a unicorn, and her time is valued at $2000 an hour. Now you can sell your two hours for a profit. Alternatively, you can redeem your time and get a piece of advice from world-renowned CEO.

What are the human equity redemption scenarios?

Human equity grants an immediate access to the issuer of this asset. Therefore if someone needs to have access to the high-impact individuals - founders, CEOs, VCs – one can come to platform, find the individual of interest, buy the respective human equity from existing owners and exchange for predetermined amount of time.

Why choose human equity over traditional financial instruments?

Human equity offers an opportunity to benefit from individual success that offers a greater appreciation potential and lower volatility. Greater appreciation is backed by more diverse growth opportunities available to an individual vs. enterprises. For example, the personal value of founder and CEO of a publicly traded company will be based on the equity of that company that he or she owns plus all the other engagements, personal investments, media engagements that he or she has through a lifetime. Lower volatility is supported by fewer elements affecting the personal value, there is very little to none effect from macroeconomic conditions, geopolitics, speculations and Wall Street’s estimates.

Why issue an human equity?

Human equity allows a completely new way to raise funds for personal projects, development and growth. High-impact individuals can fuel their success by leveraging their social capital through human equity offering. Human equity holders will provide capital, support and social impact increasing chances of overall individual success.

What are the qualification to be an issuer of human equity?

To qualify for human equity issuance, an individual must present a verifiable track-record of entrepreneurship, professional achievements or income generation. The platform is mainly created for serial entrepreneurs but is open to the top executives, high-grade professionals, and established artists.

What is the initial issuance mechanism of human equity?

An individual who wishes to do an Initial Private Placement (IPP) has to leave the request on the platform. HumanIPO does a thorough validation of qualification, necessary due diligence and gives permission to initiate an IPP. After that individual has to commit a certain amount of hours that will be used as a base for human equity issuance. Once the price and size of the offering have been validated, negotiated, and finalized on the platform, the issuer can proceed with IPP.

What are the regulations of human equity and its underlying obligations?

Human equity is built around the principles of crowdvalidation where holders of human equity collectively vote on the issuer adherence to original obligations, secondary issuances or changes to the original obligations. Issuers who do not pass the quarterly crowdvalidation will not be able to do any secondary issuances or raise any other funds on the platform.

What is the secondary issuance mechanism of human equity?

An existing issuer can choose to do consequent issuances of human equity given newly announced time commitments. Secondary issuance is only possible if 75% of existing human equity holders support such a move. There is no limit on secondary issuance throughout a lifetime as long as current human equity holders support the issuance.

What is the minimal size of the investment?

$100 is a minimal investment size. The price of each human equity is determined by either market pricing or negotiated during the initial private placement (IPP).

Is there a minimum amount of hours to go public?

An issuer can go public only after the community bought at least 5 hours of his/her time during the pre-IPO process. If pre-IPO is over with less than five purchased hours, we extend pre-IPO automatically until we reach a 5-hour mark. If we can't reach this mark within 90 days,s we cancel the IPO and refund the purchased amount.

What are the platform fees?

For issuance, the platform charges 10% of the raised amount similar to classical investment banking fees. Unlike investment banks, only 7% goes to the platform revenue, while 3% goes into the HumanIPO backup fund. For transactions, the platform charges 0.5% per transaction per leg.

Taxes

Your transactions with human equity on the marketplace will be treated as a digital asset per tax regulation in your country. HumanIPO will distribute a yearly ( Jan – Dec ) statement to each participant of investor’s realized and unrealized gains in the chosen currency.

What if the issuer dies or becomes physically unable to render the committed time?

In case of death or severe physical degradation, HumanIPO will use its backup funds to partially compensate human equity owners for the no longer available service.

Frequently Asked Questions

Placement process

1. Due Diligence

2. Issuance Details Definition

3. Pre Placement Review

4. Placement

5. Human Equity Redemption

6. Fund distribution to the issuer

Frequently Asked Questions

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