DAOs and Venture Capital: Disrupting the VC Model

The Rise of Blockchain Investment in 2021

This report documents observations made on September 23, 2021. A significant surge in investment within blockchain-based startups and digital tokens was observed throughout 2021.

Consequently, a re-evaluation of the traditional venture capital firm model is occurring as investors seek opportunities to support a greater number of projects within the cryptocurrency ecosystem.

Decentralized Autonomous Organizations (DAOs)

Decentralized Autonomous Organizations, commonly referred to as DAOs, are gaining prominence. They represent a novel approach to investment structuring.

DAOs are fundamentally disrupting conventional venture capital practices. This is achieved by constructing investment organizations directly on the blockchain.

Essentially, these organizations are built to operate autonomously and transparently, leveraging the benefits of blockchain technology.

The emergence of DAOs signals a potential shift in how capital is allocated and managed within the crypto space.