Opening a Funding Round
Funding Rounds enable squads to grow their membership and funding continuously. It ensures fair equity distribution to both new and existing members over time.
Once the squad is ready to put funds towards a mission or goal, it’s time to open a Funding Round.
Note that you can only open one funding round at a time.
To raise funds, you must first activate your wallet to accept funds. Activating your wallet launch a new Safe wallet on-chain for your squad. This is a multi-signature wallet in which all of your NFTs, ERC-20s, and other tokens will be stored.
If this is your first Funding Round, you can simply edit your
Queued Funding Round and set it to Open after activating your wallet. You can do this on the Dashboard directly or via a Proposal. To open a new Funding Round, you need to initiate an "Open Funding Round" proposal.
You can skip this step if this is your first Funding Round and you don't hold NFTs in your squad's wallet.
A blocker to opening a Funding Round is determining the current value of your NFTs. This is incredibly important, as this will influence the Vault Valuation you will use when raising new funds. The Vault Valuation before the Funding Round will determine Vault Valuation with the new contributions, determining the equity split after the Funding Round closes.
You can update the NFT valuation inside the Open Funding Round Proposal or in an Update NFT Valuation Proposal. Determining the valuation of your NFTs is subjective and up to your group. We are integrating with external platforms to help suggest NFT valuations based on the latest market price movements.
Although we aim to assist NFT valuations with automated suggestions, we strongly recommend manually reviewing the valuation of each NFT. NFT markets are not as liquid as ERC-20s, which means prices for your unique NFTs may not be objective.
After your NFT valuation is current, you can move on to the next steps. Your valuation will be stored and displayed on the Funding Round page for all (prospective) members to understand the valuation.
Lore allows you to set certain constraints for members that want to participate in fundraising. You can set the following parameters:
- ETH & ERC20 deposits: ETH is enabled by default. We also allow for USDC, APE, and wETH. Contact us in case you want to enable a deposit in another currency.
- NFT deposits: Disabled by default. Contributors can deposit an NFT into a Funding Round, value it together, and receive equity in return!
- Allowlist: You can insert a list of ETH addresses; only these addresses can deposit via the Funding Round page. Note that anyone can always deposit into your on-chain wallet if they have your ETH address; however, you can mark these contributions as spam (or refund them), and they will be excluded from the Funding Round.
- Contribution range: Set minimum or maximum contributions for your contributors, e.g. minimum 0.5 ETH, maximum 5 ETH.
- Fixed contributions: Set specific contributions for all contributors, e.g. allow users only to deposit exactly 1 ETH.
- Funding Round information: A text field in which you can give more context about the Funding Round to prospective contributors. Many squads elaborate on what the funds will be used for in this text field.
- Deposit success message: A text field will be displayed after users successfully deposit into your Funding Round. Many squads use this to guide users towards next steps (e.g. visit a specific Discord channel or page) or simply to say thank you.
Once you've set your NFT valuation that you want to raise on, as well as your Funding Round parameters, you can click "Open Funding Round" at the end of the proposal, and your Funding Round status will be set to
Open. You can now accept deposits. You can find open funding rounds in your "Active tasks" in your "Home" tab as well as in the "Funding Round" tab, along with any past funding rounds. You can share your funding round via the share button on the Funding Round page or simply via sharing the URL from the browser window.