The twist with Silicon Prairie Online is found around the core technology designed on a blockchain, also known as distributed ledger technology. This allows for advanced functionality between issuers, shareholders, and regulators.
“Our longtail is putting issuers and shareholders on a their own private ledger to facilitate the issuance, voting, communications and ultimate liquidity,” explains creator David Duccini, a local infosec consultant and technologist with prior experience in the banking, insurance, and retail sector.
“We have a very robust yet flexible means for issuers to be in full control of their destiny,” he continues. “Setting minimum and maximum raises is one thing, but to set adjust sizes, for example, and exercise discretion around who your investors are is another.”
Silicon Prarie Online intends to charge a variable issuance fee to generate revenue for itself as well as develop a referral network for successul issues via the portal.
Equity Crowdfunding in Minnesota has followed a nationwide statist movement (alongside federal deregulation) to become legal as of June, 2016. This means that Minnesota-based companies can crowdfund, either on their own or via portal, up to $2m from Minnesota residents who can invest up to $10k each per issue in exchange for equity, debt, or variance of the two. There has yet to be a single equity crowdfuding campaign launched to date.
Last month, VentureNear became the first state approved crowdfunding portal operator; TECHdotMN has since embarked on standardized documentation to simplify the process and cost for local tech startups seeking to leverage MNvest for their capitalization needs in 2017 and beyond.
“We’ll be a portal from day one,” Duccini says. “…and we’ll also be running our own issue early next year,” he says of what’s next.