blockchain fundraising with neufund...require more work than a vc pitch deck or a business plan....
TRANSCRIPT
![Page 1: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/1.jpg)
Blockchain Fundraising with Neufundneufund.org
![Page 2: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/2.jpg)
About Neufund• Neufund’s core business is in primary offering of tokenised securi=es, structured as
investment assets (German: “Vermoegensanlage”), and issued as legally binding smart-contracts on Blockchain - “Equity Tokens” in a fundraising process called E2quity Token Offering”. Company’s key exper=se is in legal-tech and reg-tech.
• Equity Token Offering (ETO) is a novel way of fundraising, which allows any kind of company (blockchain-based or not) to issue Equity Tokens on the Ethereum Blockchain, in a public or private placement.
• Equity Tokens guarantee crucial equity-like rights for the investors and the issuers. Legally, Neufund’s Equity Tokens are securi=es structured as Vermögensanlagen (“Investment Assets”). The offering is subject to the German Banking Act (KWG) and the Investment Asset Act (VermAnlG). Such Equity Tokens are technologically enhanced quasi-shares that are as easy to purchase and trade as cryptocurrencies, yet give the investors and issuers similar legal protec=on to classical forms of VC inves=ng.
![Page 3: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/3.jpg)
Deal Flow and Investors Ecosystem• For Equity Tokens primary offering, Neufund focuses on mid to late-stage visionary
companies, both on- and off-chain. A perfect candidate meets following criteria: • Is a high-tech A+ round stage company, with a recognisable brand, reputable backers or
progressive vision, or
• Is a private company with recognisable consumer brand and a progressive vision.
• Is looking for mid- to high 7-digit EUR round, ideally 8-9-digit EUR round.
• Is a B2C company with a community, or a B2B with a bold vision or mission - med tech, AI, clean
energy etc.
• Neufund is a network. Its token (NEU) was issued to build an investors ecosystem. Currently there are 1500 NEU token-holders, all of which are investors, including VC funds, PE funds, corporate funds, BAs, crypto-HNWI (“crypto-whales”), and retail. The common denominator is appe=te for high risk and interest in technology.
• The placorm accepts investments in EUR and ETH. No prior knowledge of Blockchain or cryptocurrencies trading is required from the EUR investor. Crypto-HNWI get the opportunity to deploy their crypto capital off-chain.
Download the informa?on for companies about Blockchain fundraising with Neufund here: hEps://neufund.org/docs/onepager
![Page 4: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/4.jpg)
Fundraising process with Neufund
REGISTER your company
on the Neufund Platform
CLOSE the financing
round
RAISE fund in ETH and/or EUR
SPECIFY the terms of your offer for
investors
RAISE FOLLOW-ON ROUNDS by issuing new Equity Tokens
GOVERN your
organisation after the ETO
1.
2.
3.
4. 6.
5. ON-CHAIN COMPANY
OFF-CHAIN COMPANY
![Page 5: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/5.jpg)
Registration• For the fundraising process to be most secure we recommend using a hardware
wallet for registra=on on Neufund Placorm.
• Neufund can provide you with a branded wallet - Neukey (Ledger Nano S)
• The company can also establish its own wallet and register with it
• This wallet will allow you to register on the Placorm (Blockchain iden=ty) and collect all funds raised in ETH during the ETO.
![Page 6: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/6.jpg)
• Part of Neufund’s fundraising process is a KYC
process
• Both the legal representa=ve of the company
and the company have to be verified before
the ETO process starts
• Documents like personal ID, PoA, corporate
registry number, etc. will be required
KYC verification process
Our KYC verifica=on meets German
regula=on criteria - very strict but
necessary for the security of investors and
companies fundraising on the Placorm
![Page 7: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/7.jpg)
To ease the work Neufund provides a term
sheet template, containing standard
provisions for VC market today. However
the company is in charge of configuring the
commercial terms of the ETO using
company dashboard on the Placorm.
Configurable terms include e.g.: • Company’s valua=on
• Ticket size
• Total investment amount
• Minimal investment amount
• Token Holders’ vo=ng rights
• Transferability and tradability of Equity Tokens
• Informa=on rights for Token Holders
• Pre-ETO and ETO phases and their length
ETO Configuration: Terms
Your term sheet (paper document) will be generated automa?cally
based on your input in the dashboard.
![Page 8: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/8.jpg)
Legal framework for the fundraising• Based on the condi=ons configured by the company in the term sheet the Placorm generates
the Investment Agreement. This agreement is a paper contract between fundraising company
and the Neumini.
• Addi=onally, the Placorm generates the Token Holder Agreement, which is an PDF contract
generated on-chain based on the ETO smart contract between the Neumini and the Token
Holders, that is investors in your Equity Tokens.
• The Investment Agreement transfers the shares to the Neumini, and the Token Holders
Agreement states that the shares are represented by Equity Tokens, owned by the Token
Holders. Both agreements are linked (cryptographically hashed) to the smart contract which
governs your ETO on-chain.
• Neumini is a quasi-bankruptcy remote SPV, set up to bridge the worlds of on-chain tokens and
off-chain equity. Neumini represents Token Holders as a single entry in the cap table. It is
contractually bound to execute the will of the Token Holders expressed in the smart contracts,
and performs a purely bureaucracy func=on.
![Page 9: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/9.jpg)
Equity Token Offering: Prospectus
• Neufund provides an appropriate prospectus template,
including legal disclaimers and help filing it with
Financial Supervisory Authority (BaFin).
• An Investment Prospectus (Verkaufsprospekt) and a
three page long Pamphlet have to be filed. Wri=ng and
filing the Prospectus using Neufund Placorm does not
require more work than a VC pitch deck or a business
plan.
• In principle, but depending on the final terms, you can
offer Equity Tokens both to accredited and retail
investors, in public and private placements.
![Page 10: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/10.jpg)
Fundraising
• Complete support for ETO process, for both the investor and the company
• Like on any other investment placorm company will have a public lis=ng on our Placorm for the investors.
• The lis=ng will require details similar to those in your pitch deck.
• With this public lis=ng company will be able to not only address all investors on the Placorm but also investors from outside.
• ETO investors can commit funds in EUR and ETH. Hence investors do not have to be familiar with Blockchain technology.
![Page 11: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/11.jpg)
Secondary Market and Tokenised Securities Trading
Naturally, "equity tokens" and other tokenised securi=es can be traded only by properly licensed en==es, like Blockchain enabled stock exchanges, licensed crypto-exchanges, brokers, banks etc.
Due to the awakening regulators, throughout 2017 two trends have emerged in the industry: 1. Crypto-exchanges are gekng licensed for securi=es trading. 2. Progressive banks, financial ins=tu=ons, as well as progressive stock-exchanges
are integra=ng Blockchain technology to enable tokenised securi=es as part of their offering.
3. Organisa=ons are looking for op=ons to tokenise their equity, instead of u=lity token fundraising.
Neufund is working with a number of partners around the world to develop such secondary trading ecosystem.
![Page 12: Blockchain Fundraising with Neufund...require more work than a VC pitch deck or a business plan. •In principle, but depending on the final terms, you can offer Equity Tokens both](https://reader033.vdocuments.site/reader033/viewer/2022041613/5e392e3913e9833485267deb/html5/thumbnails/12.jpg)
After a successful ETO Neufund Platform deducts a success fee and distributes it back to the community: •3% of raised funds •2% of issued equity tokens
There is zero upfront fee.
These are distributed to all NEU Token Holders.
Fees