Neufund (Fifth Force) ETO

The first company to conduct its Equity Token Offering (ETO) through Neufund is Fifth Force GmbH (the official platform operator and the legal entity behind Neufund). The offering will start on November 27th with a whitelist subscription period, and end on December 16th after seven days of public sale (that will start December 9th). Fifth Force GmbH is the official platform operator of Neufund, an end-to-end solution for securities tokenization and issuance. We will announce the details of the offering on November 27th alongside the ETO’s listing page on the platform.

So far, we have onboarded over 3,000 investors from 91 countries and announced seven companies to conduct Equity Token Offerings in the coming months. Fifth Force’s ETO will serve as a test drive for Neufund’s set of protocols.

“More than a year ago we made a promise to conduct the first ever legally binding offering of tokenized equity on Blockchain in 2018 and we remain true to that plan. The first ETO will be the ultimate showcase of our product,” said Neufund co-founder and CEO, Zoe Adamovicz, regarding the announcement.

Minimum ticket

Neufund’s top priority has always been to give everyone access to the same investment opportunities, whether they want to invest €500 or €100k. In order to make that happen, for nearly 2 years we have remained in close communication with the German Federal Financial Supervisory Authority (BaFin). While we managed to explain Neufund’s product and reach consensus about our legal architecture, Neufund was unexpectedly requested to conduct an audit on its technology at the very last minute. Such request has no legal reference in existing regulation nor in guidance provided by BaFin, and has never been brought up over the course of our dialogue before. It’s worth noting that Neufund’s technology is open source and has been accessible to anyone, including BaFin, in real time on our GitHub since January 2017.

Neufund’s platform is ready to conduct the ETO in 2018 as promised; however, with BaFin’s unexpected request we have to raise the minimum ticket size for this ETO to €100k — by doing so we no longer have to wait to show you our product.

We know that it means a lot of you will not be able to participate in the ETO, and we want to assure you that Neufund remains fully committed to making investment opportunities accessible to all. Next year, Fifth Force plans to conduct a second phase of the ETO, which will offer similar investment conditions as the one set to start on November 27th, with a minimum ticket size of €500.

Innovation isn’t always easy. Sometimes the simplest change or improvement in an already-operating system creates suspicion. It is fully justified as in most cases, the motivation is to ensure users’ safety. But sometimes, rather than being embraced, innovation gets postponed without clear reason.

Today, we enter the phase of the first ever legally binding Equity Token Offering. The future of tokenization is here.

Details of the ETO are now public

You can find all the details of the offering in this blog post or on the Neufund listing page.