Neufund launches first compliant STO for retail investors

Berlin-based Neufund was launched in 2016 with a mission to “open finance for all.” To achieve this, the company tokenizes equity using blockchain technology, allowing startups and SMEs to gain access to funding at a lower cost than traditional fundraising avenues.

Neufund to issue equity tokens to retail investors

On September 16, Neufund announced in a press release that it had received regulatory approval to host a public offering of equity tokens of the company Greyp, an electrical mobility platform – backed by Camel Group, Porsche, and T-Mobile – that makes electric bikes.

While equity token offerings (ETOs) are nothing new in the crypto asset markets, the fact that Neufund has been given clearance to offer the security tokens to retail investors – with a minimum investment of only €10 – is a first.

Zoe Adamovicz, co-founder and CEO of Neufund, stated, “Neufund delivers on its promise to democratize access to funding for entrepreneurs globally and enable anyone to access innovative investment opportunities in a compliant and secure environment. It’s a big day – not just for Neufund, but for business and finance communities at large.”

Adrian Hasler, the Prime Minister of Liechtenstein, commented: “I am pleased that Neufund has decided on Liechtenstein. This shows that Liechtenstein with its open attitude towards new technologies is perceived as an attractive location for innovative business models.”

Additionally, Neufund stated that while its offerings are governed by German or Lichtenstein jurisdictions, companies from across the globe can leverage the platform to raise funds through the sale of a compliant digital token. Companies from Belgium, Croatia, Germany, and India have already engaged Neufund to launch offerings.

STOs for everyone

The announcement of Neufund’s first retail STO is a welcome sight for digital asset investors who have been unable to partake in security token offerings because they do not meet investor requirements.

ICOs allowed anyone around the world to invest in the digital tokens of new startups. However, they lacked consumer protection, which resulted in a large number of investors losing money. The new, regulated version of ICOs – the STO – has the potential to reignite the democratization of capital raising in a more professional and consumer-friendly wrapper than its disruptive, but flawed predecessor.

If more jurisdictions are receptive to retail-targeted security token offerings, we could see a resurgence in the token sale market, which could benefit startups and investors alike. If little to no countries follow in the footsteps of Liechtenstein, the small principality could become a major hub for token sales in the future.