The DAO5 intends to target check amounts ranging from $500,000 to $2 million for both seed and pre-seed stage deals.
DAO5 adopts an approach where it distributes governance tokens to recipients. This governance token is made up of the fund future DAO. Advisors and workers of the DAO5 are also awarded governance tokens.
Tekin Salimi, a former partner at Polychain Capital, has concluded a $125 million initial financing round. In the future, the fund will be turned to a fund-owned decentralized autonomous organization (DAO), according to Salimi.
The fund will primarily invest in startups specializing on layer-1 chain infrastructure, decentralized finance Fi), crypto-based social platforms, DAOs, non-fungible tokens (NFTs), and privacy technologies.
This comes at a time when crypto-native investment DAOs and traditional venture financing are rapidly overlapping. Top players in the sector are also departing the industry’s behemoths to forge their own path.
He cited Y Combinator as an example of an incubator with a prominent alumni network. Salimi emphasized on a point that it is not easy to organize founders to collaborate, but DAOs unleash the financial incentives that make it possible. Company owners can receive direct funding from venture capitalists in typical venture capital funds.