Blockstack, the software provider seeking to build a decentralized internet, has announced it intends to raise $50 million in a that would leverage A+, described as an alternative to a traditional IPO.
While the move still requires regulatory review, the would enable Blockstack to raise capital through the U.S. securities markets via a subsidiary, Blockstack LLC, which would sell a called Blockstack Stacks (STX).
Introduced in 2012 under the JOBS Act, the A+ exemption enables equity crowdfunding campaigns to offer and sell securities to U.S. investors via two tiers, either for $20 million or $50 million, over a 12-month period.
“The net proceeds of the offering will be used to accelerate the development of its decentralized computing stack and app ecosystem,” the company said in a release.
The move is consistent with past sentiments voiced by founders of the New York-based company, which in late 2017 , arguing at the time that they did not enable enough diverse participants to create a truly decentralized software network.
Still, the company has been forced to walk back its ambitions given the U.S. regulatory environment, in December of that year.
Investors included Union Square Ventures, Foundation Capital, Winklevoss Capital and Capital, among others. More than 800 people were said to participate in the .
Muneeb Ali, co-founder and CEO of Blockstack, said in a statement: “We’ve been working with securities lawyers to create a legal framework that can enable protocols to comply with regulations.”
He continued:
“This can potentially set a precedent for others in the industry, not just for public offerings, but also as a path to launch new public blockchains and establish a path to bootstrapping decentralized ecosystems.”
Blockstack founder Muneeb Ali via CoinDesk archives
Published at Thu, 11 Apr 2019 12:20:14 +0000