The Berlin startup is building a blockchain-based venture fund platform for investors to invest in startups via freely traded crypto tokens.
Through this “new kind of funding vehicle”, startups can raise funds directly from investors through initial coin offerings (ICOs). According to Neufund, blockchain startups raised more than $250 million in funding through ICOs last year.
“Neufund offers a legal and a technical solution to bridge company shares and blockchain-based tokens. This is completely new because it allows tokens to not only represent ownership in a blockchain network but also equity in off-chain companies,” commented CEO Zoe Adamovicz.
“The transaction costs for issuing and managing such tokens are close to zero, investors can buy and trade equity in private companies and it makes essentially illiquid assets immediately liquid.”
Neufund was founded in September of last year by Zoe Adamovicz and Marcin Rudolf. It isn’t the only startup in this space connecting the blockchain with investing. Slovenia’s Cashila is also developing ICONOMI, a decentralised fund management platform.