Narrative, an online content platform that aims to become “the world’s journal,” has announced it is launching an investment campaign via Wefunder. The campaign will begin on Thursday, September 26th at 8:00 pm (UTC -5).
In January 2018, Narrative announced that it was switching from the Ethereum blockchain to the NEO blockchain, for both its public token sale and integration into its platform. At the time, Narrative stated the switch was due to Ethereum’s transaction bottlenecks, high transaction fees, and unclear enhancement plans.
Narrative’s public token sale began on February 20th, 2018, and concluded on March 29th, 2018, raising an equivalent of US $2.5 million through the sale of its NRVE tokens. Narrative allocated 50% of the genesis tokens to crowdsale participants at 300 NRVE tokens per NEO, 20% to the Narrative team, and earmarked the remaining 30% for marketing.
On the day the public token sale concluded, Narrative launched the alpha version of its platform. In April 2019, the Narrative team released its beta platform through a soft launch and has since continued to add new features, updating its roadmap along the way.
Today, Narrative claims its has more than 8,600 members and over 14,000 pieces of published content.
Equity Raise Rationale
Narrative is now seeking a new round of investment via the Wefunder platform, which is an online crowdfunding service that connects startups with investors. As a fundraising platform, Wefunder is regulated by the U.S. Security Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA).
Regarding the equity raise, Narrative stated:
Narrative is not the first startup to move from token sale to more traditional fundraising. There are now even venture capital firms focused solely on blockchain projects. This is a growing trend and you see traditional equity investments into crypto projects.
The team will follow SEC Regulation CF in its fundraise, which allows for non-accredited investors to participate across the globe.
While the fundraising campaign can run indefinitely, Wefunder requires that Narrative raise at least $350,000 for funds to be disbursed. However, Narrative has set a target for US $1.07 million in capital (as seen in the “Use of Funds” section).
Investors participating in the campaign will receive equity in the form of a Simple Agreement for Future Equity (SAFE). Per the Wefunder website, “a SAFE grants an investor the right to obtain equity at a future date if the startup sells shares in a future financing.”
Narrative intends to spend 30% on development, including adding a developer to the team, 40% – 50% on marketing and customer acquisition (content creators and content customers), 12.5% – 22.5% on support operations, and 7.5% for Wefunder fees.
Note: Narrative can not legally answer questions about the campaign unless it is asked on the Wefunder campaign Ask A Question page.
The full announcement can be found at the link below: