Neufund’s fundraising platform is an ecosystem of smart contracts operating on the Ethereum Blockchain. Neufund integrates blockchain-based solutions into the existing legal framework, opening ETO process for all startups. Using our legal and technical infrastructure, startups and established companies alike can legally issue a new type of asset we call tokenized equity. Such crypto tokens reflect the value of the business operating in the real, off-chain, world and at the same time are as liquid as a currency.
We achieve this by formally linking traditional contracts with Ethereum smart contracts through mutual reference and code correspondence. Blockchain and smart contracts allow Neufund to accelerate the investment process, lower investment barriers, align interests of inventors and investors, and eliminate transaction intermediaries.
The two main types of actors on the platforms are investors and companies. Investors bring capital to the platform and look for interesting investment opportunities in companies. Companies are businesses of various kinds that look for funding by offering part of their shares to investors. The fundamental transaction on our platform is the investment, where investors become shareholders in companies via Equity Token Offerings (ETO). Companies can raise funds from investors in their existing network, as well as any cryptocurrency holder, or via the capital pool on the Neufund platform dedicated to funding. Once a company has successfully completed a campaign and issued 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.
To be a self-sustaining system, Neufund is designed to be a true token economy. Its value is reflected by a protocol token called Neumark (NEU), which participants earn by committing capital to the platform. This essentially allows people to economically own the ecosystem, a powerful incentive for investors to bootstrap the platform and grow it with further investment. Neumarks (NEU) are an attractive asset, because they entitle their holders to revenues from platform fees for ETOs (Equity Token Offerings) taking place on Neufund, holders also economically benefit from a platform portfolio pool holding a small amount of every ETO ever conducted.
The platform fee mechanism is a simple one. It is taken from the investment upon each successful ETO on the platform and immediately distributed.
Uniquely, because of the token participation fee, Neumark (NEU) holders have a stake in every ETO that happens on the platform, even without investing in those tokens directly. This way, the Neumark (NEU) creates strong alignment between investors, companies, and success on the investment platform. The value of Neumark (NEU) grows because all sides of the transaction share the success.
If you hold your NEU tokens you receive fee payouts and participation in equity tokens of every company that was ever funded on the Platform. With each successful fundraising, a fee is deducted from the investment amount and immediately distributed to all NEU holders. Additionally, a fee in the form of equity tokens released by fundraising companies is added to the Platform portfolio, which is collectively owned by NEU holders. Secondary trading of NEU is open since ICBM ends on HitBTC, Liqui, EtherDelta, Fork Delta, IDEX, and YoBit.