Neufund Raises $11.6M to Build Blockchain Fundraising Platformbr>
German startup Neufund has raised $11.6 million in a pre-sale funding round for its blockchain-based fundraising platform. Investors include Philipp Freise (Kohlberg Kravis Roberts & Co), Michael Jackson (Mangrove Capital), the VC fund Atlantic Labs, and crypto influencers Max Kordek (Lisk) and Fabian Vogelsteller (Ethereum Mist, ERC20).
The new funding will be used to launch its Initial Capital Building Mechanism (ICBM), which will allow investors to fund projects while acquiring equity in return in the form of tradable crypto tokens. The company will launch a fresh funding round on November 17 that will last for 30 days. The round is not open to US investors.
Neufund’s platform allows both well-established and new companies to get funding by issuing blockchain-based equity tokens. These tokens are issued as a result of an investment process that, in many ways, is similar to the process that a startup goes through when funded classically. In particular, a company must prove to investors that its shares/tokens have value.
Unlike a regular ICO, equity tokens represent and have legal ties to equity (shares) in their respective company, and give token holders virtually the same rights as a regular shareholder.
The company stated in its whitepaper that while it’s top priority is to make equity token offering (ETO) of equity tokens possible, the platform may, in the future, support any protocol token. These are tokens that have a strong representation within the current and/or future state of the ethereum ecosystem and that represent a voucher or right to use a specific service or network.
“At Neufund, we believe firmly that innovating, building, and contributing is the only priority of our generation,” averred Neufund co-founder and CEO Zoe Adamovicz. “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.”