VC or IDO: What’s the Difference?
Before answering the question.📣📣📣
As you may know, LPI DAO has been an investment platform tailored for VC deals (Seed & Private allocations in projects).
With the upcoming developments and updates, investors will also be able to participate in IDO(public round) sales.🎉🎉🎉
LPI DAO is scaling to more than just a platform that offers VC deals to investors. Post the implementation of the undergoing developments, LPI investors will have access allocations from VC and IDO’s various projects.
With this spectacular news, let’s answer the question!
The difference between the two deal types is that an IDO is a public sale, while a VC is a private sale.
Meaning that VC deals feature lower prices compared to IDO deals.
Usually, investing in VC deals means that the project is at an earlier stage compared to those that are having a public sale. Some projects may even be in the earliest stages where they have the whitepaper, tokenomics, and an experienced team but may not even have an attractive website to showcase their project.
A few things worth noting about VC deals are:
- It may take days, weeks, or months for the project to issue its tokens.
- The vesting time can be anywhere between 6 to 24 months or longer
- In some projects there may additionally be a cliff for private investors, meaning that you may not receive tokens for 1–3 months generally sometimes even up to 1 year after the token is launched.
- Projects can change their vesting terms for private investors and extend the vesting period.
Thus, these deals are catered to long-term investors.
While this raises the risks of the investment, these early sales allow investors to jump into the deals at the lowest prices and benefit in the long term once the projects launch and start investing in marketing and building a community around them.