Just a few days back on April 11th 2019, Blockstack announced the filing of an offering statement for a U.S. Securities and Exchange Commission (SEC) regulated $50 million security token offering under the Reg A+ framework. Notably, Harvard’s endowment fund (Harvard Management Company) has been named as one of the key investor and advisor for the offering. In total, 295 million STX tokens will be offered at $0.30 each.
Harvard’s Role in Blockstack’s Offering
According to the Blockstack’s offering circular Harvard Management Company is officially backing the Blockstack’s security token offering. Blockstack elaborated that they have formed a token advisory board, the LP Advisory Committee, the main purpose of which is to determine whether their set targets have been met. The token advisory board consists of seven members. Three of the members, Charlie Saravia, Zavain Dar and Rodolfo Gonzalez are designees of affiliates of the Harvard Management Company, Lux Capital and Foundation Capital, respectively, limited partners of the QP Fund which have purchased more than 95 million stacks tokens.
The 95.8 million tokens directly reflect an investment of more than $11 million. Besides the funding, Charlie Saravia, a Blockstack token advisory board member serves as a Managing Director of the Harvard Management Company.
Reg A+ Offering Explained
Regulation 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, each over a 12-month period. A company can initiate a Regulation A+ offering by filing an offering statement with the SEC. This regulation treats all the money raised as revenue and tax it like the money doesn’t represent equity in the underlying company.
Read the Blockstack Reg A+ offering details here
Blockstack is a full-stack decentralized computing network that enables a new generation of applications where developers and users can interact fairly and securely. Blockstack’s mission is to foster an open and decentralized Internet that establishes and protects privacy, security and freedom for all internet users.
About Harvard Endowment Fund
Formed in 1974, Harvard Management Company manages Harvard University’s endowment and related financial assets. Their aim is to help ensure Harvard University has the financial resources to confidently maintain and expand its leadership in education and research for future generations. Harvard’s endowment is a dedicated and permanent source of funding that maintains the teaching and research mission of the University. Made up of more than 13,000 individual funds invested as a single entity, the endowment’s returns have enabled leading financial aid programs, groundbreaking discoveries in scientific research, and hundreds of professorships across a wide range of academic fields.