Berlin based blockchain venture fund Neufund has secured €2M in Series Seed funding led by Atlantic Labs, Klaas Kersting and a group of superangels. Neufund offers a legal and technical solution that bridges company shares and blockchain-based tokens.
Blockchain-based startups can raise funds within hours directly from the crypto community investors in initial coin offerings (ICOs). Last year, such companies have received more than $250 million in funding through ICOs. There remains, however, scepticism amongst many traditional VCs that this arrangement will lead to successful startups. That said, blockchain enthusiasts are heralding this type of development as a revolutionary way to raise money and realise value for startups and investors. “In venture capital, both startups and investors have an almost illiquid asset position – transaction costs in and out of a company are very high. Money flows slowly – it takes about 5 years for a founder or a VC to capitalize on an exit, and about 10 years for an LP to get a return from a VC investment”, said Zoe Adamovicz, CEO and co-founder at Neufund.