- The “dao5” fund will goal seed and pre-seed stage startups and sports activities a number of high-profile crypto names amongst its advisors
- Individuals, together with the founders of portfolio corporations, will ultimately obtain a stake within the VC agency’s earnings via DAO tokens
Nowadays, nine-figure enterprise capital funds are a dime a dozen, however the newest spin on the VC mannequin from Tekin Salimi is that it ought to morph right into a DAO.
Salimi, a former common companion at Polychain Capital, says his new fund, dubbed “dao5” has raised $125 million from crypto-native traders, earmarked for seed and pre-seed startup rounds. His plan is to assist incentivize the founders of the fund’s eventual portfolio corporations by giving them direct participation within the dao5 fund’s success via a DAO (decentralized autonomous group) construction utilizing tokens that characterize the fund’s earnings.
This construction is novel in that it really dilutes Salimi and his co-investor’s stakes, nevertheless it encourages the founders of the businesses they again to collaborate in ways in which profit the collective as a complete.
“We consider that cross-pollination is crucial to fostering a collaborative founder neighborhood,” a doc outlining the fund’s ideas states.
For now, although, this plan could be very a lot nonetheless on the drafting board, and can solely be carried out in roughly three years, after 70% of the fund’s capital has been invested.
Notable among the many avowed ideas is a respect for pseudonymous contributors. The fund “works carefully with pseudonymous advisors, and invests in tokens launched by pseudonymous founders,” the ideas doc states.
“We consider that particular person privateness is an inalienable proper within the cryptoverse. We don’t put money into surveillance applied sciences.”
Among the many advisors are a who’s-who of crypto executives, traders and builders, together with Do Kwon (Terraform Labs), Emin Gün Sirer (Ava Labs), Ben Fisch (Espresso Techniques), Ivan Soto-Wright (Moonpay), Meltem Demirors (CoinShares), and the pseudonymous 0xb1 (founding father of Fodl and an NFT curator) and Cuckqueen (Femboy Capital).
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