First SEC-qualified token offering raises $23m
11 Sep 2019
Blockstack PBC has announced it has raised over $23 million in the first ever U.S. Securities and Exchange Commission-approved token offering.
Co-founder and CEO of the decentralized computing network, Muneeb Ali announced in a blog post on Tuesday that Blockstack has raised over $23 million in token offerings, which include its SEC-approved offering as well as its offering to investors outside the U.S.
For the first time, retail investors were able to get involved in the token offering qualified by the Securities and Exchange Commission, with over 4,500 investors taking part.
According to Ali, as well as retail investors, attracting strategic investors from Asia was a primary goal of the token offerings: “We are in discussions with international investors for an additional $5M+ which may be distributed in a separate private placement or in a follow-on SEC-qualified offering, as we have previously disclosed in our SEC filings. The goal of this additional distribution is to continue growing our community and network in Asia.”
Ali added: “One of our goals for working with regulators in the United States was to open up our network to a broader audience. We wanted to reach more retail investors who can be users of the Blockstack network. These users have a financial stake in the success of our ecosystem.
“We’re proud to deliver on our commitment to permit early community members who tried participating in 2017 but did not reach the wealth or income requirements for “Accredited Investor” status. These early community members were able to participate now at the same price as the 2017 Regulation D offering to Accredited Investors.”
As previously reported by Coin Telegraph, the Securities and Exchange Commission granted Blockstack the green light to operate a multi-million public token offering under regulation A+.
This refers to a type of initial public offering adapted to focus on start-up companies requiring early funding, in which anyone can partake.
Muneeb Ali, together with co-founder Ryan Shea, reportedly spent around 10 months and $2 million to secure approval from the Securities and Exchange Commission ahead of their token offering.