Neufund is a community-owned fundraising platform. It acts as a bridge between the
investment world and the blockchain space. Using our legal and technical infrastructure,
startups and established companies alike can legally issue a new type of asset we call
tokenized equity. We achieve this by formally linking traditional contracts with Ethereum
smart contracts through mutual reference and code correspondence.
Once these shares are created, 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.
In order for the described components to work and the system to sustain itself, Neufund
is designed to be a true token economy. Its value is reflected by a protocol token called
Neumark, 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 are an attractive
asset: they entitle their holders to revenues from platform fees for ETOs (Equity Token
Offerings) taking place on Neufund, as well as economic benefit from a platform portfolio
pool holding a small amount of every ETO ever conducted (more in chapter 4).