Neufund: Bridging Blockchain and Venture Capital
The fundraising platform of the future
The world of cryptocurrency has brought many opportunities to investors and companies alike. Neufund is a startup that has entered the cryptocurrency space with a brilliant idea to offer a bridge between blockchain and venture capital. Using a technical and legal infrastructure, the platform allows established companies and startups to legally issue tokenized equity, a new type of asset.
How Does Neufund Work?
Neufund achieves its vision by simply linking traditional contracts to Ethereum-based smart contracts through correspondence and mutual reference. Once the creation of the shares is complete, anyone who wishes to invest in a particular company can verify their claim by checking transaction data available on the public ledger, as well as the smart contract.
The Neufund companies on the other hand, can raise funds via capital pool or in their existing network via the Neufund platform. Once a company completes a campaign successfully and the equity tokens are issued, Neufund comes in to provide an interface that shareholders can use to interact. It can help in enabling secondary trading of equity tokens, opening more fundraising rounds, issuing reports and updates, and building resolutions legally.
Joining the Neufund Platform
To make the Neufund platform functional in the blockchain economy, the company has introduced Neumark, a fully decentralized token that represents the value of the network. When it comes to investing, there are two sides: one, there’s the investor side that brings in capital for companies (only Ethereum is supported at the moment); and two, the company side, whereby a brand offers shares in terms of the equity tokens.
Joining the Neufund platform is really simple. All you need to do is reserve funds during the ICMB (Initial Capital Building Mechanism) and receive NEU, which is the participation token of the platform. Once you have the tokens, you can then choose to invest in one or more companies listed in the platform to get tokenized equity. You can also hold the NEU token or trade it once the ICBM is complete.
Future of Neufund
By providing a platform for people and companies to interact, as well as a new way of funding ventures, Neufund could be a big disruption to the investment industry. Unnecessary barriers such as jurisdictional and geographical constraints will be removed, allowing an alliance between investors. Off-chain companies can also enter the crypto-world and make their ideas a reality.
Do you think the Neufund platform is an ingenious idea to bring investors and companies from anywhere in the world together? Or do you think this platform could disrupt the industry, bringing even more companies to the cryptocurrency space? Tell us what you think.