Opening a Funding Round
Funding rounds are our way of enabling squads to continuously fund missions that they care about. It ensures fair equity distribution to both new and existing members over a long time horizon all the way until the squad pays out all of its funds.
Once the squad is ready to make contributions, it’s time to open a funding round.
If this is your first funding round, you can simply edit your
Queuedfunding round and set it to
Openafter activating your wallet. You can either do this on the Squad Dashboard directly or via the Proposal Overview page that you can find the Proposal tab.
To open a new funding round, you need to initiate an "Open funding round" proposal.
The first step in opening a funding round is determining what the current value of your NFT portfolio is. This is incredibly important, as -- similar to venture capital -- this will influence the valuation that you will be raising new funds at. It determines how the equity will be distributed to new (and existing) members in both percentage (%) as well as absolute terms.
You can update the NFT valuation directly inside the "Open funding round proposal". Prysm integrates with external platforms to suggest new NFT valuations based on latest market price movements.
After your NFT valuation is up to date, you can move on to the next steps. Your valuation will be stored and displayed in the funding round page in order for all (prospective) members to understand the valuation.
Prysm allows you to set certain constraints for members that want to participate in fundraising. You can set the following parameters:
- ETH deposits: enabled by default. Contact us in case you want to enable deposit in another currency.
- NFT deposits: disabled by default. Contributors can deposit an NFT into a funding round, value it in ETH, and receive equity in return.
- Allowlist: You can insert a list of ETH addresses, and only these addresses will be able to deposit via the funding round page. Note that anyone will always be able to 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 to only 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 that will be displayed after users successfully deposited 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.