Neufund secures legal clearance for token offering in Liechtenstein

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Fintech startup Neufund is set to list the first retail offering on its platform after securing legal clearance from the Financial Monetary Authority (FMA) in Liechtenstein. The Berlin-based firm made the announcement in a blog post, revealing that investors can now own a fraction of listed companies for as low as €10.

Neufund’s tokenization platform lowers the barriers to entry for companies that seek to raise funding. By tokenizing, these companies can drastically reduce the costs associated with conducting public offerings. The platform also allows investors from across the globe to invest in companies that excite them, many of whom would never get the opportunity in the traditional stock market.

The company also accelerates the funding process as the companies can launch their fundraising campaigns just days after concluding the Know-Your-Customer (KYC) process.

In a statement, the CEO and co-founder of Neufund, Zoe Adamovicz stated, “With today’s announcement we deliver on our promise to democratize access to funding for entrepreneurs globally and enable anyone to access the most innovative investment opportunities with ease, in a compliant and secure environment. It’s a big day — not just for Neufund, but for business and finance communities at large.”

In a statement to CoinGeek, Neufund representatives explained the firm “has received legal clearance in which FMA informed us that our current business is not subject to FMA’s supervision (is not regulated), hence it doesn’t need approval.”

Neufund’s platform affords the users fractional ownership and a market that’s open 24/7, enabling true financial inclusivity, the company added.

Neufund also revealed that Greyp would be the first retail public offering on its platform. Greyp is a high-tech mobility startup that makes electric bikes. A sister company to Croatian electric car maker Rimac Automobili, Greyp was established in 2013, and counts Porsche AG and Camel Group as among its investors.

Neufund also revealed that while it’s under Liechtenstein jurisdiction, companies that list on its platform can be incorporated from any part of the world. The company is already working on future retail offerings with companies based in India, Germany, Croatia and Belgium.

In 2018, Neufund partnered with Polish cryptocurrency exchange BitBay to launch a crypto to fiat exchange in Malta. The exchange allows investors to buy and sell equity tokens issued on the Neufund platform for fiat currencies.

Editor’s note: This article has been updated to clarify that Neufund has received legal clearance in Liechtenstein.