Rain, a US startup, has acquired $6 million in venture investment to offer decentralised autonomous organisations with corporate credit cards (DAOs).
Lightspeed Venture Partners led the investment, which was disclosed today. Coinbase Ventures, Uniswap Labs, and Terraform Labs are among the other investors.
Farooq Malik and Charles Naut founded the company with the goal of helping DAOs expand by providing them with a business card and expenditure management tools. DAOs, unlike traditional businesses, use smart contract technology and frequently have flat organisational structures. According to The Block Research, DAOs have seen considerable growth in the last year, with approximately 1.7 million members and $16 billion in total AUM as of December 2021.
While DAOs store much of their money in treasury tokens, they nevertheless operate in a world governed by traditional financial systems, as Malik said in an interview. This means that, whether they are a five-person DAO or a multibillion-dollar protocol, they may still have traditional company expenses like travel bills, web hosting, or laptop purchases that require money.
“Right now, we’re seeing a lot of people working at decentralised companies using their own AmEx cards, business banking cards, or even paying expenses from their personal accounts, which is obviously a messy way to start building a company,” said Ansaf Kareem, a partner at Lightspeed who led the Rain investment.
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