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Tekin Salimi, the ex Polychain partner, is up to launch a venture fund worth $125 million which would have turned into DAO eventually
Today there are numerous venture capital firms in the crypto space with nine-figure funds. The pace of investment in the crypto industry also boosted the emergence of such VC firms. The latest one would become a venture fund where Tekin Salimi has an important role. However, the news that made headlines is the plan of a former partner at Polychain Capital to turn a $125 million venture fund into a DAO.
On his new funds, Takin Salimi said that the fund named ‘dao5’ managed to raise $125 million worth of funds from native crypto investors that will be allocated for investment in startup rounds of seed and pre-seed. Further, Salimi went on with his plan to help provide incentives to the founders of companies in a portfolio of funds investment. This would give them direct participation in the fund’s success of dao5 through the decentralized autonomous organization structure by using the tokens representing the fund’s profits.
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Common understanding would be that following such a structure would result in dilution of Salimi and his co-investors stakes. But what would gain is the encouragement of the founders of those companies who backed to collaborate in various ways benefitting the organization as a whole.
Outlining the fund’s principles document states that cross-pollination was necessary for fostering a community of collaborative founders. Some other notable points in the document included the avowed principles regarding pseudonyms for participants. It mentioned that the fund is working closely with advisors and investors that are pseudonyms and the tokens launched by pseudonyms founders. The document mentioned that they believe that privacy on an individual level is an absolute right in the crypto space, and they do not invest in technologies meant for surveillance.
However, the plan for turning the fund into a decentralized autonomous organization is still on and assumed to be implemented in around three years from now or after the 70% investment of the total fund’s value.
It’s not only the way the fund would operate the reason to be in the limelight. Its participants also brought the project into the light. Participants included Do Kwon from Terraform Labs, Emim Gün Sirer from Ava Labs, Espresso System’s Ben Fisch, Ivan Soto-Wright from Moonpay, Meltem Demirors from CoinShares, and the pseudonyms founder of Fold and an NFT curator, 0xb1 and Cuckquean from Femboy Capital.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
