Silicon Prairie Portal and Exchange (SPPX)

Silicon Prairie is breaking out to become the world’s next Goldman Sachs.

Silicon Prairie is breaking out to become the world’s next Goldman Sachs. The Democratization of Capital is here in the Prairie. Don’t believe us? Just watch!

Silicon Prairie Portal and Exchange (SPPX) is a Financial Technology company that runs an Investment Crowdfunding Portal in St. Paul, Minnesota. It works like Kickstarter, except Campaign Companies can sell real financial securities such as Equity, Debt, or Convertible Notes— instead of just rewards like T-shirts. Regular people and the certified rich people can invest, but the Campaign Company (fundraiser) sets the terms.

We use technology to unlock capital, while providing industry-leading compliance and documentation. This is the Democratization of Capital.

Transactions use US Dollars and US securities laws. We work carefully within the regulated industry: State Financial Regulators, Legislators, FINRA, the SEC, Securities Attorneys, real Banks and Insurance providers. We are fully compliant for these deals using exemptions from registration with the Securities Exchange Commission (SEC).

We handle Crowdfunding deals from $50,000 to $5 million, plus the mini-IPO up to $50 Million. We specialize in complex capital stacks and welcome clients that want to pair Investment Crowdfunding with Private Placement or Bank Loans. The Issuer can offer Equity, Debt, Convertible Notes, SAFE units, Revenue Share, really ANY financial instrument.  We use Blockchain Technology on the backend to track the shareholder registry so we can offer some advantages such as liquidity. This is because we are also a SEC registered Stock Transfer Agent under our Silicon Prairie Registrar and Transfer (SPRT) division.

Our team are actual blockchain experts: In Bitcoin since 2010, a dozen Patents from Wells Fargo for Blockchain in Banking, our own Proof-of-Stake Coin (market high of $19 million) and teaching the Graduate Computer Science Blockchain class at the local Private College. Blockchain is uniquely suited for tracking financial securities, and we use it to solve legitimate business problems so we can offer alternative finance services at a reasonable price point.

Our Campaign Companies have raised about $6 million (2019), which is more than most angel groups in town. Our website doesn’t look flashy because we’ve been laser-focused on making a warhorse under the hood. It represents about a million dollars’ worth software development in order to create a secure and robust infrastructure behind the scenes, including our crown jewel: the Geppetto Smart Document System.

Campaign Companies love the freedom to set their own terms, but the legal costs are a huge blocker. We require a securities attorney for quality-control purposes, but most businesses can’t afford 50 hours of bespoke legal documents just to get started. We are problem solvers, so we created a proprietary one-to-many document automation system we call Geppetto to reduce the costs.

Geppetto uses the lawyer’s own documents to create new documents with just a few hours of review. Essentially, it uses onboarding documents as the data entry for every other required document. It’s like mail-merge on steroids, except the data and the forms are loosely coupled. The output can be a Word Document, but we can also output to many other formats such as QuickBooks, XML, EDGAR, Software APIs, and/or blockchain-enabled Smart Contracts. Our IP Attorneys have never seen anything like it!

“We say, if a business doesn’t have a Bank or Angel investor to back them for $100K, then investment crowdfunding will let them put together 100 people at a $1,000 each and get the same type of deal done.”

Geppetto effectively bridges the gap between lawyers and software developers to create the world’s best foundation for Smart Contracts (contracts that execute like software). Coders shouldn’t write legal contracts, and lawyers fall short of elegant code. Geppetto bridges the gap by leveraging the strengths of both. Geppetto has been live since 2017 and is quickly being applied to additional industries. If you’re suffering from redundant data entry, we want to help! Our roadmap includes enterprise services in Banking, Accounting, Insurance, and Medical Technology.

Cryptocurrency/ tokens: Friends don’t let friends hold an ICO without getting an effective exemption or registration first! We were the first SEC registered Transfer Agent with a compliant pathway to create tokenized assets. We can clone our 2Give coin and bootstrap your network on a few laptops vs. underpowered tokens like Ethereum/ERC20. However, we make buy-vs-build recommendations based on what’s best for your company, not a hidden agenda or shilling. We have a 501(c)(3) nonprofit for Blockchain Education and Consulting, can donate 2Give for free for your Blockchain or Fintech project.

Our founder got into Bitcoin in 2010, and immediately realized the power of a distributed ledger—someday every business could issue their own financial security with liquidity, plus incredible transparency and traceability. But first, the laws would need to catch up….

The JOBS act in 2012 confirmed that small businesses need a bridge across the funding “valley of death” created by the Securities Act of 1933. The old regulation was supposed to protect regular people from getting swindled, but it created a feedback loop that hurt small businesses AND hobbled economic mobility. The Investment Crowdfunding laws fix this flaw while still protecting investors. We became a Portal operator to host these deals so businesses cross the valley by raising funds from the crowd.

“You do NOT need a coin to operate a Smart Contract, but Smart Contracts do require Smart Documents!”

We used our portal to raise $250K from about 60 people. We’ve run lean and built a million-dollar industry-leading software platform that should break even in 2020. Our customers have all been referral to date, so next step is building a marketing team, productize Geppetto, acquire a FINRA reporting broker-dealer and a community bank. The goal has always been the same: The Democratization of Capital.

Innovator or Facilitator:
We have a unique role in our tech scene: we’re a breakout tech startup, but we’re so competent that our community seems to view us like an institution. On one hand it’s flattering, on the other hand it’s isolating. We’re here to help other businesses with their funding needs, so the pageantry is just distracting from our core mission. Innovation is our beating heart; our daily grind is to solve complex problems.

Investment Crowdfunding is going to be a $3 trillion industry worldwide. We’re well positioned to become an industry leader in the US because we’re a hardcore technology company with deep respect for compliance. This new field requires a multi-discipline approach, but established players like broker-dealers can’t afford to entertain experimental products in place of known revenue. Large corporations also exclude themselves as internal politics kill innovation and top talent abandons rigidity. On the other side, new tech teams often severely underestimate the power of regulators, and the frustration pioneering laws. We might be the only people positioned to take advantage of the opportunity: we’re a nimble team of deep experts, with no egos and nothing to lose.

Beyond attractive investments, society needs these businesses to get a fair chance! Small business is the backbone of our economy, but new entrepreneurs are often un-bankable or can’t demonstrate the required return of 3x in five years. Honestly, entrepreneurs should be wary, bad terms are common! We’ve seen good teams trapped in abusive terms or quit in disgust from an overbearing investor. When they quit, we all lose. Do we really want corporate middlemen, accountants, and bankers to be the gatekeepers for inventions and projects they don’t not understand?

Unlike other Portals, we are not here to be gatekeepers. We’re passionate about equal access and free speech: If the business is lawful, pays our fees, and passes QC—we have no problem accepting headline risk of
our Campaign Companies. We’re fastidious about compliance, but we don’t pass value judgements on the businesses. The whole point of Crowdfunding is so the CROWD can vote with their dollars! If other portals refuse to serve 98% of applicants, that’s not the spirit of innovation. We’re here to make the Democratization of Capital a reality—don’t believe us, just watch!

Thank you for reading! We’re a small team and love support from the community. We’re here for business, so please reach out if you think we have overlap.

Silicon Prairie Portal and Exchange (SPPX)

sppx.io
Jade.Barker@sppx.io


David.Duccini@sppx.io

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