⚡ VC funds that do not create native Web3 capabilities will be at a disadvantage. This is a world where users are indistinguishable from investors, and this means that the native players will have an advantage.
⚡ DAOs could become a decentralized version of VC. Started with ICO. Solo investors are gathering to be able to compete forming clusters. This is a process independent from Web3 but leads directly to #DAOs.
⚡ DAOs wouldn’t necessarily have the same GP/LP fund VC structure. But they’d need to adhere to things like securities laws and accredited investor rules, at least to operate in the U.S.
✅ A DAO could be the solution to one of the industry’s most nettlesome problems: the misaligned interests between allocators and managers, as well as incentive and informational asymmetry.
✅ DAOs disrupt the investment market. Its like the crypto version of an investment club, and it allows people to invest in projects, vote on decisions like fundraising, participation in projects, etc.
✅ The real task of DAOs are transforming real existing entities like VCs, corporations, etc. Andreessen Horowitz and GV popularized the idea of delivering structured services with dedicated teams, but that idea is now old enough to deserve some disruption of its own.
For more information:
How to turn your VC firm into a DAO
VC-backed DAO startups are racing to define what DAOs actually are.
Not all ‘decentralized autonomous organizations’ are autonomous… or decentralized
How the Adoption and Evolution of NFTs and DAOs Will Benefit Social Tokens – From a VC Perspective
How do the interests of VC funds conflict with the interests of the community?