Neumark tokens coming soon! Neumarks are platform tokens on Neufund, representing rights to revenue and a share in all companies that perform ICOs (or TGEs, i.e. “Token Generating Events”). Similar to how Bitcoin incentivizes securing the network by issuing bitcoin to miners through Proof of Work, Neufund incentivizes investors bringing liquidity to the platform by issuing Neumarks.
Bridging the worlds of blockchain and venture capital Neufund is building a blockchain-based and investor-directed platform which bridges the worlds of blockchain and venture capital. Our tech & legal platform enables the creation and operation of a new kind of VC fund. One that unlocks the resources of cryptocurrency and blockchain to fund startups and all forms of technological innovation and disruption.
While initially our platform is going to be utilised exclusively by our fund, that will only act as the seed of what we hope to grow to be the largest investment ecosystem on the blockchain.
Neufund will gradually expand its platform’s capabilites and with that open up the platform to startups and funds of all sizes, industries and jurisdictions to take part to a truly open investment ecosystem.
Our platform will enable investors to access a diverse dealflow while keeping their investments fully liquid. At the same time startups and funds can now reach previously unreachable sources of capital and through our platform take advantage of what blockchain technology has to offer. Unparalleled velocity of fundraising, efficiency and security through smart contracts and novel governance models are only some of the capabilities that blockchain technology can unlock.
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We’ve been working on this project since September 2016 and we think it is time that we share our concept with the community. We have published our whitepaper and would be happy to hear your opinion on it!
The idea for NEUFUND was born when we realized that blockchain-based tokens are a very flexible and liquid proof of ownership, smart contracts are trustless and cheap to enforce and that funding process via token sale actually works. Technically, conceptually and financially we’ve seen evidence that ICOs have become a viable funding strategy. It would be great, we thought, if existing and new off-chain startups could use it! NEUFUND is an answer to that. NEUFUND is building a platform which bridges the worlds of cryptocurrency and equity. In essence, through NEUFUND, it is very easy for any business to convert part or all of their equity into tokens and get funding via a process similar to an IPO. On the funding side, anyone can easily become an investor with full limited partner rights via the NEUFUND token or to become a shareholder of any business through ownership of its tokens.
Blockchain has become a buzzword these past months but it is certainly not a new kid on the block. The foundations of the technology have been constructed over a decade ago and since then technology has been maturing in the background. What people see today is just the tip of the iceberg.
Security is the one worry we get all the time when it comes to blockchain. But blockchain was built exactly to solve safety, security and privacy issues that exist as a result of the current centralised establishment. Since all the transactions are encoded on the blockchain, the transactions are hosted independently of any central authority. Terms and conditions are transparent and secure through automatic enforcement encoded in blockchain-based smart contracts. Note that the ability to have full transparency in the blockchain does not imply that all blockchain solutions are built to take advantage of that feature. In addition using a technology like smart contracts introduces the concept of ‘trustless trust’ since actions are enforcable and executed automatically without any human intervention. This feature, we believe, will prove to be extremely powerful in the future for a myriad of applications.
1- Deal Execution Velocity: The typical turnaround time for a typical startup to get funding is around 6 months from the time of application to the time the funds reach the bank account. Our platform and community participation allows us to do this process as fast as in 6 weeks.
2- Contracts: Expensive big contracts on paper put piled on top of some hefty legal costs are replaced by Smart Contracts that are secure through automatic enforcement and are independent of any central authority.
3- Diversity: Typically location-dependent, often focused on startups with clear short- or midterm ROI. Instead through the NEUFUND platform location is not important any more. Possibly more diverse dealflow and openness to novel industries and ideas.
4-Liquidity: Traditionally once money is invested it’s hard to get it out or move it around in the portfolio. With our solution, investors can trade their tokens anytime, unlocking these illiquid assets.
5-Openness: Typically a limited number of investors with a certain wealth can become an LP in a VC firm. NEUFUND will be a community where thousands can participate with no minimum ticket.
We have learned a lot from TheDAO and NEUFUND is different on many levels.
1- We have actual legal contracts backing our smart contract so for example if you buy a token in our system you become a shareholder in an off-chain company.
2- We are semi-autonomous at best: decisions are made by a committee where people are elected by token holders and are also assigned by the platform operator. We’ll not have a situation where there’s no quorum or stagnation in decision making.
3- We will actually “seed the spirit” of the system by bringing initial deal flow of projects for the community to consider - you can just think that in order for a DAO(Decentralised Autonomous Organisation) to start working, you have to initially lead it by example and have a mechanism to incentivize actors for decisions that are good from system’s perspective.
TheDAO was hacked because they kept their ether in smart contract, we’ll keep our assets (not only Ether - we’ll diversify) in cold storage. We’ll have proper procedures involving hardware wallets etc. to access the funds. We’ll have ongoing educational part - we do not want our users to get hacked and we’ll incentivise them to use hardware wallets and cold storage for assets they own. We’ll open source our critical code like smart contract and funds processing components to have an audit from community.
We believe the blockchain and crypto communities are some of them most tightly knit out there. They consist of people who truly care about the cause of the technology and what it can do for humanity in the long run. We view other companies less as competition and more as inspiration. More as collaborators and co-creators of the future we want to have. We are not building a platform, we are building an ecosystem and we want everybody to take part and take advantage of its features whether it is on-chain or off-chain companies.
The platform is being build to allow projects and startups from all over the world in all kinds of industries to tokenise their shares and get access to capital in the most efficient way. We are interested in all projects which create value, and we think broader than just about classical startups. A startup is, in fact, a quite specifically defined. On one hand there is a wide variety of projects in the startups ecosystem, but on the other there are pretty clear patterns for business plans and investors expectations for development trajectories of startups - there is a seed, A, B, C etc. round, there is a break even after 1-3 years, there is a hockey stick growth and there is an exit. But what if someone has an idea for a business that would reverse climate change, or for new security algorithms that could prevent mass surveillance, or for an art project that redefines the art market, but which would follow a very different trajectory than a classical Silicon Valley startup? Such projects would find it hard to get VC funds, yet it does not mean that they are not innovation that creates value. We would definitely look at projects like this, and NEUFUND would be able to finance it, thanks to the flexibility we have because we are not just a VC fund, but rather a blockchain-based investment ecosystem.
The one restriction for creators to have in mind is that NEUFUND will be an equity trading platform. This consequently eliminates all projects which would like to instead promise goods or stake in services as an exchange of token ownership. That being said, all projects applying for funding through our platform are going to be approved by a commitee comprised of members of NEUFUND and the community. This step will act as a filter or in other words a first part of the due diligence.
We expect that our investment portfolio will be consisting of a mix of companies traditionally backed by venture capital as well as edgy projects; blockchain based or not. We are all about disruption so if you are building something that is not not traditionally funded by venture capital, whether that is an edgy technology or a novel research project, we would love to talk to you as much as startups coming from the traditional realms of venture capital. You can reach us at [email protected]
We are starting with features that will allow NEUFUND VC to capitalize via ICO, elect delegates to manage the fund, to perform ICOs for startups that seek investment on our platform and to distribute proceeds from investments. There are more features coming:
1- Startups can be governed on-chain: this includes voting on shareholder resolutions, reporting to token holders, getting more funds and deciding on token trading.
2- We open our platform for other investors to take the lead: independent investment proposals, due diligence, investment decisions, etc. will be allowed.
3- We launch a platform to trade startup tokens.
We believe that as our company matures, our token will only get more valuable. Our token can be traded and exchanged just like any cryptotoken hence unlocking the possibilities of extra profit all while giving investors the flexibility to liquidate(i.e. sell their shares) at any point in time. On top, our token makes you a Limited Partner(LP) in NEUFUND and gives you a share to the returns we get from successful investments just like in traditional venture capital.
An ICO stands for Initial Coin Offering. A novel way of fundraising for a new cryptocurrency venture created to bypass the tedious and highly regulated capital-raising process of traditional venture capitalists or banks. It has been used widely in the blockchain world to signify crowdsales of a specific token or coin. These coins do not necessarily represent the same kind of value. Some can be equity, some can be promises of a service, some might be special rights for using a product and the list goes on. In our case, our NEUFUND ICO will be one of the first to tokenise actual equity. Equity that is mapped to the real world and backed legally. We think that ICOs are the future of funding. In fact you can say that NEUFUND will become a DO that lets any project to do their own ICO in an easy way - providing the technology and an investment community. Our fund’s ICO will take place sometime this year.
The NEUFUND Platform and the NEUFUND Fund are two separate legal entities. The former is the technology builder which operates as an infastructure provider to the later which operates as a VC Fund on the blockchain. The full amount of the initial 2M investment went into the platform part of the business while the full amount of the ICO’s proceeds will be the equivalent of a tokenised share of the fund and belong to the ICO investors alone.
It seems that all financial investors who are dealing with innovative projects, be in venture capital or more risky projects in private equity, are aware that the time has come to innovate also in the financial ecosystem. When we think about innovation we focus too much on flashy trends like mobile phones and autonomous cars, and we forget that the metal coins we keep in the pocket are nearly 3000 years old. It cannot be more obvious that something must change, and that the change will be for the better. Our investors realize this, and that’s why they bet on NEUFUND.