Will DAOs Replace Crypto Venture Capital?

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Will DAOs Replace Crypto Venture Capital?
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Investment DAOs are on the rise. Will they replace crypto venture capital? 0x_bae reports.

for projects that become liquid or marked to market.

“Crypto has allowed micro VCs to really thrive, because the return on investment on blockchain projects can be in the thousands of percent,” said Michael Steinberg, founder of venture capital firm . Steinberg dubbed investment DAOs as “fundamental recasts” of angel networks or syndicates – loosely organized networks of investors whom early-stage startups have traditionally turned to for funding., which allows accredited investors to participate in deals alongside top venture capital firms such as Tiger Global or Y Combinator.

“The problem with the syndicates is, as a passive investor, you have no access to the founder” of the startup, Steinberg said. “With DAOs, there’s no gating intermediary to block your access.”Founders also can benefit from their interaction with the DAO, which includes receiving product feedback and advice from a crypto-native community. For fledgling crypto startups, user adoption and product market fit are all too familiar challenges they – and their non-crypto counterparts – still face.

Raising funds from investment DAOs “helped us in bootstrapping our own community by on-boarding new members through co-hosting events with GCR,” said

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