Year of the DAO is a newsletter from DAODAO exploring the newest developments and diving deep into the world of DAOs.
Venture Capital is a $320 billion industry. But it is only accessible to the top 1%.
Here's how VC DAOs are changing this.
Venture Capital (VC) is a form of private equity that funds startups and early-stage emerging companies.
New companies sell ownership stakes to VC funds in return for financing, technical support, and managerial expertise.
VC Funds offer some of the highest-performing investment opportunities available. But the game is rigged.
Most VC funds are only available for accredited investors.
This means the government has to grant you the right to invest with these funds.
Only individuals that earn $200K per year of income or have a net worth of $1M are eligible to become an accredited investor.
If you do not meet those criteria, you are out of luck.
This applies to the Web3 world as well. Giant VC firms are able to get in on the ground floor and purchase heavily discounted tokens.
And the Web3 VC business is booming. In fact, Forbes ranked none other than Chris Dixon as the best VC investor in 2022.
But the Web3 VC industry currently models TradFi VC. Only accredited investors have access.
Luckily, VC DAOs are changing this.
VC DAOs are disrupting the traditional VC model through decentralization and accessibility.
There are a few DAOs already changing the VC landscape.
Alliance DAO
Alliance DAO is a Web3 accelerator and founder community. You can think of it as the Decentralized Y Combinator.
The goal of Alliance DAO is simple: to grow Web3 to 1 billion users by 2025.
The Alliance Accelerator has supported 84 startups and over 170 founders.
The DAO community is made up of over 120 mentors and 410+ members.
Some notable mentors include:
Plus many more. It would be difficult to find a stronger network of mentors anywhere else in the Web3 space.
Venture DAO
MetaCartel Ventures (MCV) is a decentralized venture fund aiming to make investments in early-stage DApps.
MCV chose the DAO structure to operate for a few key reasons:
Diverse due diligence
Distributed decision making
Incentivized aggregation of deal flow
Low participation risk
MCV has already made early-stage investments in a number of DeFi projects such as:
For Web3 companies looking to raise capital, MCV is an intriguing option, as it is more like an open source software project + angel fund than the traditional VC firm.
MCV is open to working with projects that are pre-company formation and pre-business model, remote teams, and anyone based anywhere in the world, as well as anonymous founders.
Seed Club
Seed Club is a DAO that builds and invests in communities. Similar to Alliance, Seed Club also has an Accelerator program for up-and-coming Web3 projects.
DAO members get full access to discord, private events, educational content, and governance.
If you want to join the DAO, you simply need to hold 10 $CLUB, the DAOs governance token.
Seed Club DAO members include some of the most impactful and influential individuals in the Web3 space.
We are in the early stages of VC DAOs. But the potential is limitless.
It is only a matter of time before DAOs completely overhaul the VC industry.
Want to create a VC DAO but not sure where to get started?
Check out DAODAO.
Build a community, launch a token, govern on-chain, and execute your DAO's mission all on one platform.
Join the movement at daodao.io and discover the new kind of crypto platform.
Thank you for reading this deep dive into VC DAOs!
If you enjoyed this issue, make sure to check out our thread on Media DAOs!