How to Invest in Innovative Companies on Neufund
A foolproof guide to getting started with Neufund.
What does Neufund do??
Neufund is a blockchain-based equity fundraising platform which operates on the Ethereum blockchain. Neufund connects investors and inventors and allows them to conduct regulated fundraising rounds in an easy and legally-compliant manner.
Using the Neufund platform, companies can conduct primary offerings of securities as legally-binding smart contracts (i.e. Equity Tokens) on the blockchain. The platform is operated by Fifth Force GmbH and operates under German jurisdiction.”
Simply, Neufund aims to make investing easy for both investors and entrepreneurs. Through a single, blockchain-enabled interface and no transaction fees, investors can make informed investments using Euros or Ethereum into companies from around the world. With Neufund, investors can interact with their equity whenever they want to.
Transferability: send and receive equity directly
Save costs and time with direct transfers between blockchain wallets. Send equity to friends, family, or business partners directly.
Tradability: liquidity a click away
Liquidate your investments easily. Access a global pool of investors across multiple secondary exchanges and make an offer within a few clicks.
Security: two-layer protection
The record of your equity ownership is saved on the public Ethereum network. Your claim is immutable and fully transparent. Thanks to Neufund’s unique architecture, you’re also protected by traditional legal documents.
Investing with Neufund
- Register on the platform. Use your existing blockchain wallet or create one with a few simple clicks.
- Confirm email and verify your identity to prepare your account for future investments
- Browse through comprehensive investment opportunities and invest easily with EUR or ETH.
- Be a part of the company’s life. Claim dividends, vote on resolutions, and more through a simple interface.
FREQUENTLY ASKED QUESTIONS:
Who can be an investor?
Individuals, companies, and institutions can register to become investors on the Neufund platform.
In accordance with regulatory requirements (AML), individual or corporate investors from the following countries cannot be accepted: Bahamas, Botswana, Democratic People’s Republic of Korea (DPRK), Ethiopia, Ghana, Iran, Pakistan, Serbia, Sri Lanka, Syria, Trinidad and Tobago, Tunisia, Afghanistan, Guam, Iraq, Libya, Nigeria, Panama, Puerto Rico, Yemen, Cambodia and the United States of America.
What is Light Wallet?
The Light Wallet is an in-browser wallet, built from an open-source library. It is a starter for those who are new to blockchain. If you are experienced with blockchain and would like to invest large amounts, we strongly suggest you register with a Ledger Nano.
What is identity verification (KYC)?
Know Your Customer (KYC) is an identity verification process through which we verify the legal identity of our investors and issuers. Whether you are an individual or representing a business entity, you will need to pass our verification process to pursue investments or fundraise on the platform.
What is Ethereum?
Ethereum is an advanced type of blockchain. Ethereum is an operating system with functionalities like self-executing smart contracts, allowing developers to create decentralized applications running on top of the Ethereum network. Ether is the cryptocurrency of the Ethereum blockchain. It can be used to pay for services within the decentralized application network. New Ether is being created in a process called mining. A miner validates transactions and therefore receives new Ether.
What is nEUR?
- nEUR is a stable coin which mirrors EUR investments on the Neufund platform.
- nEUR represents EUR on our platform and can be purchased using EUR via bank transfer. In return for the EUR transferred, the investor will get an equal amount of nEUR
- nEUR issuance is done through Quintessence PLC, a separate entity which provides the nEUR issuance service on the Neufund platform.
It’s important to note that nEUR tokens may only be used on Neufund’s platform and only to acquire equity tokens or for-profit distributions of companies that have issued equity tokens. nEUR cannot be used on other platforms or freely exchanged between holders.
For more information on how to purchase and redeem nEUR, Neufund has a guide here.
Do I need to pay fees as an investor?
In general, investors do not pay commission or platform fees. However, Neufund charges a fee when an investor wants to move funds from their wallet to their bank account. Every time an investor redeems nEUR there is a 0.5% transaction fee which will be deducted from the redeem requested amount.
What is an Equity Token?
An equity token is a technologically enhanced quasi-share that gives investors and issuers legal protection similar to classical forms of VC investing. They guarantee equity-like rights for investors and issuers. Every investor receives a legal agreement following their investment.
When you invest in equity tokens, you are investing in legally-binding security tokens representing equity ownership in a specific company. Depending on the terms of the investment offer set by each issuer, these tokens include certain shareholder rights (dividends, resolution voting, etc.) as well as utility functions.
How will I be able to trade Equity Tokens?
Whether or not the investors are able to trade or transfer their Equity Tokens depends on the sole discretion of the company that issues the tokens. Investors will be informed prior to investing in a specific ETO if the equity tokens are transferable (at the company’s discretion, this can be changed later).
How are Equity Tokens’ dividends paid out?
Dividends are distributed automatically via equity token smart contracts. The payout conditions will be established up-front in the company’s term sheet. The company will transfer all proceeds to the Nominee. Through the Nominee, the platform will distribute the proceeds to the token holders. The legal framework and safety of the operation is ensured by the Token Holder Agreement and Investment and Shareholder’s Agreement (ISHA), which are cryptographically hashed in Equity Token smart contracts.
At which transaction rate is my ETH handled once I invest into ETOs on the Neufund platform?
The valuation of the ETH depends on the current conversation rate and not on the rate it had at the moment of investment (also for commitment in the case of ICBM investors). Once you invest, your ETH will stay with the value of the current conversion rate. The rate is available on chain via token price oracle, it’s updated every 10 minutes from the feed provided by CoinMarketCap. The conversion to EUR happens at the moment of investment.
What happens when a company makes an exit after I’ve invested in its ETO?
In case of an exit the proceeds will be distributed to all Token Holders pro rata. These operations will be managed by equity token smart contracts. These rules are laid out in the Token Holder Agreement and the ISHA (Investment and Shareholder’s Agreement) that companies disclose before conducting an ETO.
What is Neumark and how do I become a token holder?
Neumark (NEU) is a token that represents economic co-ownership of the Neufund platform. There are 2 ways to become a NEU token holder:
- Each time an investor invests in a particular ETO, they will be rewarded with NEU in proportion to the amount they invest
- NEU is also traded on secondary markets. Investors can purchase NEU on the following exchanges: HitBTC, Yobit, ForkDelta, IDEX, Etherdelta, BitBay.
What are NEU token holder rights and what are the benefits?
With each successful ETO, a platform fee is paid by the company who raised the funds: 3% from the amount of the capital raised (ETH and/or EUR) and 2% of the equity tokens issued. These fees will be distributed between all NEU token holders.
To be accounted for when NEU rewards are distributed, you need to have the NEU outside of the exchange in an external wallet. So, if you purchased NEU tokens on an exchange, you need to transfer them from the secondary exchange to your personal wallet. This way the smart contract will know how much NEU is held by external wallets and distribute the payouts pro rata, as it doesn’t take into account how much NEU is held in exchanges. If you want to accept payouts then the NEU needs to be in the wallet linked to your Neufund account, and your identity needs to be verified.
Black One Entertainment
Black One is one of the first Equity Token Offerings (ETO) worldwide, powered by Neufund. We are a fully integrated entertainment company built for today’s fast-changing content landscape. Providing a repeatable end-to-end solution for building and retaining music idols. Black One combines key parts of education, training, management, and label-like services into one unified, holistic and fully supportive development process.
Black One does this by taking inspiration from the billion-dollar K-Pop conglomerates — proven to develop highly talented, popular acts–and fusing this with western aesthetics, innovative sounds, and best- practices from professional sports. Black One intends to challenge the status quo and will create an exciting world of content, products, brands, and experiences.
Backed by Funkhaus Berlin and the Dan Pearlman Group, Black One is establishing the ultimate, one-stop platform for top musical talent and creative individuals from diverse fields. Insiders have dubbed Black One “The next generation entertainment empire”, “The Rocket Internet of Music”, and “The JYP Entertainment of Europe.” Black One challenges the status quo by developing highly-skilled, sustainable, and multi-talented acts to unite and inspire audiences worldwide and create a colorful world of content, brands, products and experiences.