Equity Token Offerings (ETOs) Explained & How Neufund Is Leading ETOs

Mario

Founder | CEO | Investor

What is Neufund:

Neufund is a blockchain-based fundraising platform with strong potential to become the world’s leading platform for Security Token Offerings (ETOs). They are a company that is amongst the few of 2017’s successful ICOs that have actually developed a functioning product, and stood the test of time and, most importantly, the test of greed.

Their aim is to offer entrepreneurs the means & instruments to finance their projects by directly targeting those that share their vision.

And that’s exactly why they created an Equity Token Fundraising Platform.

As a fundraising platform that is owned by the community, it functions as a bridge between the unconventional Blockchain sphere & the traditional Investment world.

However, before we proceed…

What is an Equity Token Offering (ETO):

An ETO (Equity Token Offering) is a distinct variation of the Initial Coin Offering (ICO) and in fact a variation not too far off the Security Token Offering (STO). Within ETOs, the token itself is an Equity Token that is directly linked to certain shares of a company.

Hence, in a nutshell, our good old STO allows businesses to raise money by selling digitalized financial securities to investors under the supervision of a jurisdictional financial regulator, and our new ETO allow businesses to raise money by selling their digitalized tokenized shares to investors, under the supervision of a regulator. Essentially the ETO can be seen as a more focused subset of STOs.

Since all ETOs are also classed legally as STOs, ETOs and their offerings are subject to the same regulatory requirements as security tokens and their respective offerings. They are basically a hybrid model that combines the advantages of VCs, ICOs, and IPOs.

This, of course, means that an ETO has to be registered and approved by its jurisdiction’s Financial Regulator, all investor data has to be collected so as to comply with utmost KYC/AML requirements, aggressive “speculation based marketing” to the masses is restricted, and much more…

Back to Neufund:

Through a mixture of traditional legal methods and innovative technical facilities, projects, as well as existing firms, can legally issue a fresh form of “security” labeled as tokenized capital. Neufund aims to provide Equity Token Offerings (ETOs) with a simple and transparent platform where fundraising can become drastically easier, as they maintain their own investment-able community.

This recent ETO development enables both off-chain and on-chain businesses/start-ups to issue controlled investment tokens on the Ethereum Blockchain.

In this way, Neufund’s ETO can officially link traditional investment contracts with intelligent Ethereum contracts by means of shared reference and correspondence.

Neufund In 2019:

Through a mixture of traditional legal methods and innovative technical facilities, projects, as well as existing firms, can legally issue a fresh form of “security” labeled as tokenized capital. Neufund aims to provide Equity Token Offerings (ETOs) with a simple and transparent platform where fundraising can become drastically easier, as they maintain their own investment-able community.

This recent ETO development enables both off-chain and on-chain businesses/start-ups to issue controlled investment tokens on the Ethereum Blockchain.

In this way, Neufund’s ETO can officially link traditional investment contracts with intelligent Ethereum contracts by means of shared reference and correspondence.

Neufund In 2019:

They’re currently just conducting the first ever official Equity Token Offering (ETO), and after an initial & successful test round, have decided to add four more companies to their up and coming Equity Token Offering (ETO) pipeline, allowing them to complete Seed and Series A Rounds directly through the Neufund community run platform. Their plans include featuring two blockchain start-ups (Agora.Trade & Ngrave), an e-mobility company (CurfTech) and a cleantech pioneer (Air Profile), which can all be found directly on their platform, https://platform.neufund.org/

Thoughts:

Companies like Neufund not only serve as proof of concept behind the hypothesis of the Crypto Industry being one to be taken seriously but also confirm that yes, there truly are projects with a vision and an ability to execute.

It is just way too often that we hear about a project raising millions and then disappearing into the unknown, and that’s exactly what Neufund counters. Our CEO Mario Nawfal talks about the importance of differentiating quality projects form scams in this quick video.

 

There will be bad apples, however, the essence of the industry remains the same;

ICOs/STOs/IEOs/ETOs are built upon a bunch of visionaries looking to raise funds to deliver something that is of value on a worldwide scale.

How a company like IBC could help you raise money through an ETO:

IBC is a company that was founded in 2017 with a focus on helping projects raise capital through the opportunities presented by the emergence of the Cryptocurrency industry.

Having assisted dozens of projects to raise millions since the initial 2017 hype, clients can honestly say that there’s no company out there that could match the level of experience and knowledge that our team has demonstrated in terms of helping businesses raise capital.

IBC is probably the best out there due to its preserved level of transparency & utmost quality when delivering the services it advertises. The company is currently preparing to service not only ETOs but also is also actively spear-heading the fundraising efforts of ICOs, STOs, and the recent booming Initial Exchange Offerings, also known as IEOs.

The team is being led by our founder, Mario Nawfal, and is divided into 4 sub-departments consisting of an experienced fundraising team, a sharp marketing team, a technical team, and a business development team. Additionally, fundraising without the consultation of an informed attorney can turn out into a total catastrophe and that is exactly why we maintain a partnership with IBL, International Blockchain Legal, who specialize in everything to do with the legal intricacies of your fundraise.

Feel free to schedule a consultation call with our team via our website:

https://ibcgroup.io/contact/

Visit the website for more information:

https://ibcgroup.io/