Berlin-founded startup Neufund built upon the idea of legally-binding token offering on the Ethereum blockchain has announced the first Equity Token Offering (ETO) on its platform. The first company to test-drive the solution starting on November 27th is basically Neufund itself — that is, Fifth Force GmbH, which is the official operator of Neufund.
Neufund, which also claims to be advising the governments of Malta and Germany on the regulatory developments regarding blockchain, stated to have already onboarded over 3,000 investors from 91 countries on the platform. It also has seven ETOs lined up for the next few months.
Initially, Neufund announced that the minimum ticket in the ETOs on its platform will be set at €500, however, for the first offering it had to be raised by 200 times.
“…due to an unexpected request for a technological audit from the German Federal Financial Supervisory Authority (BaFin), has raised the minimum ticket to €100,000,” the company stated in a press release. “The request has no legal reference in existing regulations and has never been brought up in conversations between the company and the watchdog in course of their dialogue, which was initiated nearly 2 years ago. It is the only substantial barrier that stops Neufund from offering a minimum ticket of €500, which is accessible to a much wider public.”
Neufund also stated that Fifth Force to conduct the second part of its ETO later this year with similar investment conditions and a minimum ticket €500.
Image credit: Chris Liverani on Unsplash
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