Community-owned fundraising platform Neufund, a coding project on the Ethereum blockchain, has announced a successful pre-sale funding round of $11.6 million. Backed by private investors from funds such as Philipp Freise (Kohlberg Kravis Roberts & Co), Michael Jackson (Mangrove Capital), VC funds such as Atlantic Labs, and crypto influencers like Max Kordek (Lisk), Fabian Vogelsteller (Ethereum Mist, ERC20), the company will use the money raised to launch its Initial Capital Building Mechanism (ICBM).
The protocol will allow investors to fund projects while acquiring equity in return in the form of tradable crypto-tokens. The blockchain-based fundraising platform allows start-ups, SMBs, and established companies to legally issue a new concept of asset ownership. Neufund operates as a public, open-sourced platform that allows any entrepreneurship venture to hold an ‘Equity Token Offering’ for their own company’s Equity Token. Neufund’s ICBM will occur on the 17th of November, 2017, at 11am UTC, lasting for 30 days.
Designed to be compliant with blockchain technology and current legal regulations, Neufund’s protocol token is the the Neumark (NEU). NEU tokens are earned by committing capital to Neufund’s platform; the amount of NEU held then represents the individual’s share of the Neufund ecosystem. When an investor uses the funds they committed to the platform to contribute to a company’s ETO, the investor will receive equity in the form of the respective company’s crypto tokens, and NEU tokens.
With the NEU token users will stay in full control of their funds with no minimum requirement on contributions. Tokens entitle their holders to revenues from platform fees for ETOs taking place on the platform and can be traded on crypto-exchanges and transferred among users. In addition, if a contributor desires to remove their capital, they can do so after 18 months, with a 100% return.
Zoe Adamovicz, Co-Founder and CEO of Neufund, remarked: “At Neufund, we believe firmly that innovating, building, and contributing is the only priority of our generation. We are excited to have developed a new way to fund ventures , and ultimately, to remove unnecessary barriers that prevent the alliance of inventors and investors, including geographical and jurisdictional constraints in order to open innovation for good.”