Investment DAOs Taking On Venture Investments

Investment DAOs Taking On Venture Investments

DAOs are decentralized organizations that have become an influencer in capital investments and other purposes like raising funds, managing funds, and transparently buying NFTs. It helps to provide a smooth the way for investors to earn capital by investing in particular assets. It is different than your typical legal setup of venture investments as it is autonomous and completely transparent.

As DAOs have no central authority, there is no biasedness involved in decision-making processes. These processes are backed with smart contracts and secured through blockchain technology. The investment DAOs function by utilizing the tokens to vote to invest in a certain project. The main aim is to motivate venture investments by providing them with a friendly ecosystem for funding. For instance, investing in NFTs to buy rare documents or franchises related to professional sports.

The funds generated through venture investments influenced by DAOs are relatively more transparent as the members of DAOs have the choice to inspect the transactions on the blockchain. To highlight some good examples of DAOs, we have Komerabi, MetaCartel, and Global Coin Ventures producing resources and making decisions related to capital investments.

Investment DAOs specifically take care of the initial stages of crypto startups by either investing member capital or investing a small portion of DAO’s treasury into them. Furthermore, users can take advantage of interaction with DAOs by getting their feedback on a product and getting suggestions from the crypto experts’ community.

We have an example of Global Coin Research (GCR), an investment DAO that has invested in more than 30 deals with almost $35 million in projects like Aurora and Coinvise. Even the founder of Coinvise (Jenil Thakker) has appreciated the timely investments made by GCR and the early feedback that helped them in their early stages.

With the constant investments in cryptocurrencies, the crypto growth has reached almost $3 trillion capital market. This has given birth to several investment DAOs, such as Kamorebi Collective, which helps explicitly female founders. Whereas, FlamingDAO supports NFT platforms by product testing and giving respective feedback.

Many people think that the investment DAOs with the rise of the digital world will soon replace traditional venture investments. But currently, we can expect to experience a hybrid model of DAOs with the expertise of venture investors and traditional legal centralized investors.


Many founders of startup crypto projects prefer to go for investment DAOs rather than venture capital firms. The reason lies in the decentralized and autonomous nature of DAOs that lacks in the traditional setup of venture capitals.

Leave a Reply

More from GCR



Mapping the Landscape of Web3...

(A Look Into Portfolios, Competitive Dynamics, Post-Investment Support, Fundraising Activity, and more.) Part I:  Overview The web3 venture capital landscape has morphed into a complex


GCR Community Events Recap

GCR AMA: Deep Dive with Adam Struck of Struck Capital - Adam Struck is the founder of Struck Capital, an early-stage investment firm that runs

Featured GCR Announcement GCR Exclusive Podcast

Nihar Shah and Lucas Baker...

Nihar Shah and Lucas Baker are researchers and investors at Jump Crypto, the crypto division of Jump Trading Group, a research-driven quantitative trading firm.  Jump