Blockstack Raises $23mln Via First-Ever SEC-Qualified Token Offering

Blockstack PBC, a decentralized computing ecosystem, has stated that it has been funded over $23 million in the first-ever US Securities and Exchange Commission (SEC)-authorized token offerings.

In a blog post, Muneeb Ali, co-founder and CEO of Blockstack PBC, has stated that the startup firm raised funds both through offering approved by the SEC and to investors outside the US.

It is the first time the US based retail investors are able to participate in a token issue authorized by the SEC. Over 4,500 individuals and firms took part in the issue.

Investors who took part in the issue are Union Square Ventures, Recruit Holdings, Frontier Ventures, Lux Capital, Hashkey Group, Arrington Capital, Fenbushi Capital, and Spartan Group.

Ali explained that the primary objective of the token offerings is to attract strategic investors from Asia, in addition to retail investors. He said:

“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.”

The US Securities and Exchange Commission (SEC) approved blockchain-based firm Blockstack to commence a multi-million public token issue governed by regulation A+.

A financing round governed by regulation A+ is similar to initial public offering (IPO) customized towards startups in need of early financing, in which anyone from the public can participate.
Ali, along with co-founder Ryan Shea, has spent 10 months and roughly $2 million to obtain approval from the SEC, prior to the token issue.