VC Usage of DAOs

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

DAOs bring many benefits to the startup fundraise.

These include a community focused on supporting a common cause.

And software to track the results and execute the policies of the group.

Venture capital will find both aspects appealing for startup fundraising.

Since the regulatory laws behind DAOs are not yet defined in the US, it is difficult to use a DAO directly for raising and deploying funds.

Other tools such as Special Purpose Vehicles or SPVs can be used.

DAOs can be used to support a fundraise such as harnessing the community to invest in the startup.

Since investors fund causes they support, the DAO is an ideal tool for raising funds.

The software tools based on blockchain technology can also be used to track the community’s interest and actual engagement in a fundraise.

Smart contracts for fundraising can also be reused by the VC industry to raise and deploy funds into startups.

There are several DAOs that track the newly formed DAOs.

This makes it possible to identify the appropriate communities to pursue for startup fundraising.

DAOs provide not only potential investors but also software to track the community of investors and smart contracts to execute the fundraise.

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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