Andreessen Horowitz Backs NFT Investor Group - Wu-Tang Clan Album
PleasrDAO Receives Investment from Andreessen Horowitz
A new investor has joined the crypto collective known as PleasrDAO: the prominent venture capital firm, Andreessen Horowitz (a16z).
TechCrunch reports that a16z has made a strategic investment in PleasrDAO, a blockchain-based group comprising several dozen crypto investors. This collective has gained recognition for acquiring high-value NFTs in recent months.
Notable Acquisitions by PleasrDAO
The group’s portfolio includes the iconic Doge image, purchased for $4 million (equivalent to 1,696.9 ETH). They subsequently fractionalized this asset and distributed it within the crypto community, achieving a current implied market capitalization exceeding $100 million.
Furthermore, PleasrDAO secured a work by Edward Snowden for approximately $5.4 million and acquired the Wu-Tang Clan’s “Once Upon a Time in Shaolin” album for $4 million.
Understanding DAOs
A DAO, or decentralized autonomous organization, functions as a group formally structured around blockchain-based voting systems. These systems facilitate decision-making and capital allocation.
This investment in PleasrDAO isn't a16z Crypto’s initial foray into DAOs. In October, they invested in Friends With Benefits (FWB) DAO, assigning it a $100 million valuation.
While the exact investment amount remains undisclosed, council member Santiago Santos clarified that a16z’s stake in the DAO’s governance tokens is “less than 5%.”
The Origins of PleasrDAO
Initially, PleasrDAO was formed with a specific objective: to bid on a digital artwork created by pplpleasr. This piece was an animated video advertisement for the Uniswap decentralized exchange platform.
The group originated in March following a tweet from crypto founder Leighton Cusack, who inquired about forming a DAO to participate in the auction. They ultimately secured the bid at 310 Eth (roughly $525,000 at the time), with all proceeds donated to charity.
Future Aspirations
“We quickly realized that many of the most insightful minds in DeFi were present, creating an opportunity to steer this initiative in a compelling direction,” explains Santos to TechCrunch.
“As the DAO evolved, we recognized the need for enhanced structure and a more defined hierarchy.”
The group continues to expand its investment activities and portfolio, with a focus on identifying and supporting emerging artists. Santos envisions PleasrDAO becoming a leading “Medici house” for NFTs, fostering the discovery and initiation of digitally native artists.
a16z’s Perspective on DAOs and NFTs
“DAOs represent a remarkably pure expression of the core principles underlying web3 and crypto,” states a16z GP Ali Yahya to TechCrunch.
The emergence of “crypto-native” investment funds, operating closely with founder and developer networks, has prompted established firms like a16z to increase their support for innovative groups such as DAOs.
Andreessen Horowitz believes it can provide valuable assistance to PleasrDAO in areas like policy and regulatory compliance – domains where DAOs currently navigate a largely unregulated landscape.
Expanding a16z’s NFT Portfolio
a16z’s investment in PleasrDAO is fundamentally a bet on the future of NFTs, an asset class the group has already heavily invested in.
This year, the firm has backed prominent NFT platforms including OpenSea, Sky Mavis, and Royal. They also spearheaded Meta4, a $100 million venture fund dedicated to acquiring high-value NFTs.
These investments are drawn from a16z’s substantial $2.2 billion crypto-focused fund, launched earlier this summer.
“The potential of NFTs is often underestimated,” Yahya concludes. “It’s entirely plausible that NFTs will achieve significant scale, potentially surpassing the market capitalization of fungible tokens.”