Neufund is a community-owned fundraising platform. It essentially acts as a bridge between the investment world and the blockchain ecosystem. Using the platform’s legal and technical infrastructure, startups and established businesses alike can legally issue a new type of asset, a tokenized equity. The Neufund achieves this by formally linking traditional contracts with Ethereum smart contracts through mutual reference and code correspondence.
The Neufund ICO, based out of Germany, managed to raise a little over $14 000 000 for their project.
Key Features:
Once shares were created on the Neufund platform, anyone can invest into the company issuing them and verify the company’s claims by checking smart contracts and transaction data on the public ledger. The result is a primary market for real world, technologically enhanced equivalents to shares – “equity tokens” – that aim to be as liquid as cryptocurrency. By joining the platform and bringing their fiat currency on-chain, users gain access to this market. In this way, Neufund also functions as a powerful mechanism for onboarding off-chain investors and companies to the crypto economy. Companies can thus raise funds from investors in their existing network, as well as any cryptocurrency holder, or via the capital pool on the Neufund platform dedicated for funding. Once a company has successfully completed a campaign and issued their equity tokens, Neufund provides an easy-to-use user interface for interacting with shareholders.
It is possible to hold votes for legally binding resolutions, issue updates and reports, open further fundraising rounds, enable secondary trading of equity tokens, and perform other functions necessary for responsible corporate governance.
The Neumark token is an ERC20 token, the value of which results from fees and participation in a platform pool of equity tokens, and thus gives economic ownership of the network to said holders. With each successful ETO, a small fee is deducted from the invested amount. This platform fee is then distributed to Neumark holders in proportion to amount of Neumarks they own.
Normally, whenever it comes to security tokens there are always issues with legal compliance. However the Neumark team seems to have handled the way they issue their tokens with impressive legal awareness, as they even have companies who have hosted ETO(Equity Token Offering) on their platform. Their marketing is a little lacking, however, as Neumark isn’t what you’d call a well known project.
Neumark looks like a solid project, the team definitely knows what they’re doing, having a working product, several conducted ETOs and coverages from media giants like Bloomberg, Reuters and Forbes and as security tokens are becoming more and more popular, we’ll definitely be hearing more from the project.
