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Current NEU reward: 3.08 NEU / 1 EUR
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Neumark (NEU)
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Current NEU reward
3.08 NEU / 1 EUR
0.00 NEU /
EUR

EQUITY TOKEN OFFERINGS

An Equity Token Offering (ETO) is a novel way of fundraising, which allows any kind of company – blockchain-based or not – to issue equity tokens on Blockchain, in a public or private placement. An ETO is a hybrid investment model which combines the advantages of an IPO, an ICO, and a VC round.

Neufund’s platform serves as a primary market for the issuance of blockchain-based tokens that represent private equity. Equity Tokens are universal security tokens. Both traditional and crypto investors can invest.

ISSUING EXPLAINED SEE CURRENT OFFERINGS
Issuerheroimage
feature_icons_raise_ETH_EUR_light_bg Created with Sketch.

Raise in ETH and EUR

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Govern investors easily

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Global pool of investors

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Also for off-chain companies

  1. Digital representation of asset ownership
  2. Legally enforceable tokens
  3. Technologically enhanced shares
  4. Shareholder rights directly embedded into a smart contract
  5. Integrate various utility functions
  1. Conduct easy follow-on rounds
  2. Can be used by any type of an incorporated entity worldwide
  3. User friendly issuer dashboard
  4. Technical & legal framework provided by Neufund

Fundraising process with Neufund

1

Verify your company on the Neufund platform

Step1 kyc issue

Register on the platform with Ledger Nano and go through the verification process.

No, any company from across the globe can fundraise through Neufund without incorporating in Germany. However, the offering is subject to the German Banking Act (KWG) and the Investment Asset Act (VermAnlG). We do not accept issuers coming from the US, due to the regulatory uncertainty.

Read more about KYC for companies


 

2

Set up your Equity Token Offering

Step2 terms issue2

STEP 1: Specify the terms of your investment offer

You are in charge of the investment terms of your Equity Token Offering. Fill in the data in our user friendly dashboard and the term sheet will be automatically generated.

Neufund provides a term sheet template, containing standard provisions for today’s VC market. The company is able to configure all commercial terms of the ETO using a dashboard on the Platform.


 

STEP 2: Register your ETO with the financial authorities

Equity tokens are tokenized securities. In case of a public offering you have to register them with the financial supervisory authorities. You do so by filing a prospectus.

The role of the prospectus in the legal ecosystem is to inform future investors about the terms and conditions of an offer. By this regulators make sure that both you and your future investors’ rights are being protected. Neufund provides appropriate guidelines and support for filing the prospectus. Effectively companies are not required to provide much more information than for an extended VC pitch deck, business plan or whitepaper.

Read our blog series about prospectuses


3

Fundraise with ETH and EUR

Issue investing ETH

Address both traditional and crypto investors from across the globe. A public listing page will present all legal, investment-related and commercial information about your company to investors. All investors are presented with the same investment offer, which eliminates the process of renegotiation of terms and lowers significantly your transaction costs.

In order to successfully collect funds you will need to run a fundraising campaign or an investor roadshow. By doing so you will build a community of investors that - when registered and verified on the Neufund platform - can purchase your equity tokens.

More than 2500+ investors joined our community


 

4

Close the financing round

To finalize a successful offering we automatically generate an Investment and Shareholders Agreement that will be signed by the participating parties. Depending on the jurisdiction your company is incorporated in, a notarization may be required. Once this agreement it uploaded back to the platform the funds you raised will be released to you and the equity tokens to your investors. A success fee will be automatically deducted and distributed to all Neufund platform owners.

Only after a successful ETO Neufund deducts a success fee:

  • 3% of funds raised, in EUR and ETH.
  • 2% of issued equity tokens.
  • There is zero upfront fee.
  • If your ETO requires consultation or a smart contract extension, for example you’d like to build a token model in your product, or extend the Equity Token with a utility function, we may discuss a consulting fee.

How do we distribute success fees


 

5

Govern your organisation after the ETO

Our platform supports the management of your token holders after the ETO. Thanks to automated voting and reporting mechanisms, shareholder resolutions, cap table management and dividend payouts running an on-chain company becomes almost effortless.

After the first successful ETO it is easy to do follow-on rounds by issuing additional equity tokens. Also, an ETO does not exclude conducting further classical VC rounds or an IPO.

Via the management dashboard you will be able to enable additional features of the equity token.

 

Bridging on- and off-chain worlds

In order to provide equity token holders with legally enforceable shareholders rights, we connect the underlying asset with its on-chain representation in form of a token. This is being achieved by writing all legal agreements in two languages: English and Solidity. Both the smart contract and the legal contract are cryptographically hashed at all times.

Neufund 2018 10 DiagramLegalEcosystem 04 04
  1. A paper agreement is generated based on the transaction in which investor sends ETH to the company, and the company gives the investor certain rights which are in the token, i.e. smart contract agreement.
  2. In order to prove that the transaction took place, the investor can show the paper agreement, for example in the court.
  3. From the company’s perspective, the proof of transaction is saved on the Blockchain.
  4. A smart contract is a piece of code that represents the same rights as on paper.

Diagram issuer entriescaptable

A nominee is a bankruptcy remote SPV, set up and 100% owned by the fundraising company to bridge the worlds of on-chain tokens and off-chain equity.

The nominee represents the Token Holders as a single entry in the cap table. It is contractually bound to execute the will of the Token Holders expressed in the smart contracts, and performs a purely bureaucratic function.




CURRENT OFFERINGS

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