The Neo Foundation (NF) has released its financial report for the first half of 2020, which includes the NF’s expenditures and assets under management. The financial reports portray the NF’s fiscal health and are released at a six months cadence. The first financial report was released in September 2019, and the second released in April 2020.

Expenditures

NEO

At the beginning of 2020, the NF had 13,339,135 unlocked NEO available to spend on operations and ecosystem growth. In March 2020, a further 1,660,865 NEO was unlocked, bringing the total to 15,000,000. Between January and July, the NF spent 555,581 NEO, or 3.7% of the available funds. The breakdown of spending can be found below.

Operations of NF and Neo Global Development (NGD)

283,366 NEO (51%) was used to finance Neo core development, and support NF and NGD operations. Examples of expenditures include salaries, marketing fees, rent, and other costs associated with running a business.

Ecosystem Project Financing

205,181 NEO (36.93%) was used to finance and motivate the growth of the ecosystem. Historically, these costs have been associated with funding ecosystem projects and Neo community groups.

Eco Fund

67,032 NEO (12.07%) was used to invest in the Neo Eco Fund, which included Switcheo, among others.

GAS

The NF began 2020 with 4,151,770 under its management. In the first half of 2020, an additional 850 GAS was received through network fees. During the reporting period, 80,930 GAS was spent on financing the NF, NGD, and core developers.

Assets Under Management

Fund Investments

Before December 31st, 2017, the Neo Foundation (formerly known as the Neo Council) invested in several projects and successfully exited with an equivalent of 1,060.29 BTC. Following the exit, that BTC was reinvested in the NGC Fund I and the Neo Eco Fund.

The NF financial report denominates the value of each fund in units of BTC.

NGC Fund I – 821 Units

NGC Fund I is managed by Neo Global Capital and is the for-profit investment branch of the NF. It invests in projects that do not directly compete with Neo. The financial report states that NGC Fund I paid 1 BTC for each dividend and the net value after dividend as of June 30th, 2020 was 2.01 BTC.

Neo Eco Fund – 3,836.88 Units

The Neo Eco Fund is managed by NGD and typically aims to invest in projects or teams that have “material synergies” with the Neo ecosystem. Neo Eco Fund’s unit value was reported to be 1.35 BTC as of June 30th, 2020.

The financial report notes major investment projects of NGC Fund I and Neo Eco Fund to include: Celer, CertiK, Cocos BCX, Coco Finance, Crypto FAST, Liquid, Liquify, MixMarvel, Moonlight, Nash, Ontology, Polkadot, Switcheo, Trinity, Tonart, Travala, and Zilliqa.

NEO and GAS

Following the spending of 555,581 NEO and 80,930 GAS in the first half of 2020, a total of 42,244,723 NEO and 4,070,840 GAS remains under the management of the Neo Foundation.

Non-NEO Assets

The Neo Foundation’s asset portfolio also includes BTC, ETH, ONT, ONG, USD, and CNY, which had a reported worth of US $50,194,390 as of June 30th, 2020.

Total

Cumulatively, on June 30th, 2020, the NF’s total portfolio was valued at approximately US $524,303,997.

The full report can be found at the link below:
https://neo.org/files/Finacial%20Report%202020H1.pdf

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