Greyp recently closed a successful offering through Neufund’s securities tokenization platform. After more than €1 million was raised — some of which from retail investors — the offering has now been completed as security tokens were issued to investors.
Greyp’s Security Tokens Have Now Been Issued
In December of 2019, e-mobility company Greyp Bikes announced the successful close of its Security Token Offering (STO). The offering was powered by Liechtenstein-based Neufund and went on to raise €1.4 million.
A pre-sale kicked off in October, while a public sale proceeded through the end of November. Neufund referred to the sale as an ‘equity token offering’.
Notably, the sale marked the first Neufund STO open to retail investors. The minimum investment was €100. In the end, over 1,000 investors from more than 30 countries participated in the offering. High profile backers included the likes of Porsche and Camel Group.
Now, the offering has reached its final stage of completion, as security tokens have been issued to investors. Given the unique structure of Neufund’s platform, those who invest in a security token issued by Neufund will also receive a portion of the financial success seen by the platform.
Investors who purchased security tokens through Greyp’s offering essentially become something along the lines of a Neufund co-owner. This ultimately means they are entitled to a certain distribution from the success of Neufund.
Neufund’s Distribution Model for NEU Token Holders Explained
Neufund aims to democratize the raising of private capital. The company has developed a novel distribution model to help achieve its target.
Every investor who invests in an ‘equity token offering’ through Neufund’s platform will receive a portion of the company’s native Neumark (NEU) tokens. The platform will then share a percentage of the fees associated with launching an equity token offering through Neufund with NEU token holders.
From the total capital raised during an offering, Neufund charges 3% in fees. Accepted forms of payment include the Euro, Ether, or a combination of the two. Yet in addition, Neufund charges 2% of the equity tokens sold. This 2% is deposited into a fund owned by all NEU token holders.
Throughout each year, NEU token holders receive periodic distributions relative to the amount of NEU tokens in their possession. In this sense, NEU token holders are akin to co-owners who receive dividends.
Throughout the course of 2019, Neufund is said to have distributed a total of €111,000 to token holders. The decentralized structure is designed to attract the support of not just companies, but investors as well.
As clearly demonstrated, both the platform and its investors experience a mutual benefit when a company launches an offering through Neufund. So far, the platform has seen success — not just with Greyp, but with its own offering which raised €3 million.
The platform is able to offer security tokens to retail investors, in compliance with the Financial Monetary Authority (FMA) in Liechtenstein. Further, Neufund already has its next slot filled, with an upcoming offering for Black One Entertainment Group.
What do you think about Greyp completing its offering? What about Neufund’s distribution model? We want to know what you think in the comments section below.
Image courtesy of Neufund.