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Neufund Receives Green Light to Offer Security Tokens to Retail Investors
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On September 16th 2019, Neufund received regulatory clearance from the Financial Monetary Authority (FMA) in Liechtenstein to offer security tokens to retail investors. The platform’s first public offering of tokenized equity for retail investors is already underway.
How Neufund Can Now Offer Security Tokens to Retail Investors
Neufund is a security token issuance platform. In late 2018, the company raised €3 million in its own Security Token Offering (STO), which was the first STO to be completed in Europe. Out of a concern for regulatory compliance, the offering was limited to sophisticated investors.
Now however, Neufund has received the regulatory green light to offer tokenized securities to retail investors. The clearance comes from Liechtenstein’s FMA.
The regulatory clearance allows for retail-grade public offerings for tokenized equity with a minimum ticket size of €10. US-based investors are allowed to participate, but must be accredited.
Zoe Adamovicz, Neufund co-founder and CEO, says the clearance will democtratize access to funding for entrepreneurs and companies across the globe.
According to Adamovicz,
“It’s a big day – not just for Neufund, but business and finance communities at large.”
Even Adrian Hasler, the Prime Minister of Liechtenstein, commented on the news:
“This shows that Liechtenstein, with its open attitude towards new technologies, is perceived as an attractive location for innovative business models.”
Neufund has already announced the first retail issuer on its platform. Greyp, an electrical mobility platform backed by Porsche, Camel Group, and T-Mobile, is looking to raise funds through Neufund from retail investors. The offering opened on September 16th.
In addition to equity, security tokens have seen implementation in assets such as real estate, investment funds, and even fine art.
Neufund is currently working to host future securities offerings for companies based in India, Croatia, Germany, and Belgium.
What do you think about Neufund receiving regulatory clerance to host STOs for retail investors? Let us know what you think in the comments section below.
Image courtesy of Neufund.
Tim Fries
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird's US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
