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Invest In A Fundraising Event

Invest In A Fundraising Event

As an investor, participating in fundraising events initiated by Collective DAO is an important way to join a Collective DAO.

When a Collective DAO initiates a Fundraising and enters the fundraising phase, anyone who meets the Member Eligibility set by the DAO (wallet address) can participate, deposit funds to the DAO and seek an investment share to become an Member (acting as both Governor and Investor) of DAO.

Existing members are not subject to the restrictions of Member Eligibility and can make advance deposits during the fundraising period. However, when allocating investment shares, if a Priority Depositor is designated, existing members will not have priority unless they meet the conditions of the Priority Depositor.

Before Involved

Participating in a fundraising in Collective DAO requires the following considerations:

  • Carefully read the information provided by the DAO about this fundraising, such as the Private Placement Memo. In general, you can find the introductions and links to this in the Fundraising proposal.
  • Carefully understand the theme, size and other information of this fundraising. This information allows you to know what areas your money will be invested in in the future and what the prospects are.
  • Learn more about the DAO's existing Members. These people will be discussing and making investment decisions with you in the future, and, to a large extent, their performance and abilities will impact your future returns.
  • View the DAO's portfolio to see the DAO's previous investment performance.
  • Take a closer look at the DAO's Fee settings, including Scout Fee & Carry and Redemption Fee.
  • Check the participation limits of the current fundraising, including the Member Limit and Member Eligibility, so that you know whether you are eligible to participate.

Make A Deposit

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When a Collective DAO's Fundraising proposal is approved and Fundraising is started, you can see its current status and data on the DAO's homepage, such as the fundraising goal and the amount currently raised, and the countdown to the fundraising period. If you decide to invest in this fundraising, you only need to:

  1. Click the Deposit button in the Deposit module.
  2. Then enter the amount you wish to deposit in the input box that pops up (the minimum deposit threshold and the maximum limit that can be deposited depend on the minimum Deposit and Maximum Deposit settings set for that DAO).
  3. Confirm that the amount is correct, click Deposit button again, and after two wallet transaction confirmations, the deposit is successful.

One thing to note is that you need to understand how the fund will be raised this time.

  • In a FCFS type of fundraising, when you successfully advance deposit before fundraising closes, then your advance deposit is equal to final deposit in the fund if fundraising success.
  • In a Free-In type of fundraising, your final deposit in this fundraising depends on a number of other factors, such us proportional allocation to deposits under overfunding, and Priority Depositors have priority allocation privileges. Check Fundraising for details.

When you become a Member of a Collective DAO, you can see yourself in the member list on the DAO's About page, along with your deposit amount and percentage.

If you have already made an advance deposit, but the fundraising fails to raise funds, you can get the refund from My / Refund page. If you participate in a Free-In type of fundraising, but only a part of your advance deposit is finally accepted and confirmed at the final allocation of fund share, then you can get the remaining deposit refunded in My / Refund page. See Refund for details.