While Traditional Venture capital funds are managed by ‘ General Partners’, in which they are surrounded by an army portfolio managers and analysts sourcing investment opportunities on behalf of the interests of the Institutional Investor, a NEW WAVE of Investment Vehicles are starting to question the status que .
During my Web Journey I’ve been playing with the idea of launching an NFT collection, based on the model of the DAO, in which WEB3 natives can operate on the foundations of VC funds, but with more ownership and direction on how their funds are managed, while also learning the methodology and ‘Data Sources’ used by traditional Hedge funds, Commodity Traders and especially VC’s .
A DAO ( decentralized autonomous organization ) that raises and invests capital into assets on behalf of its community.The DAO would bring together the Web3 ethos and the operational seamlessness of smart contracts. Should anyone ( or a group of Investors) that believe in a specific investment strategy ( Commodities, Equities, Bond, or the price Lithium market ) can come together and pool capital to form a fund.Investors can contribute in different sizes to the DAO depending on their risk appetite and their governance (voting rights ) based on their contributions.
In traditional VC, LPs are not able to liquidate their positions in the fund before the fund offers an exit. Tokenized investment DAOs address that issue. Investment DAOs can have a token that derives its value from the underlying portfolio. At any point in time, investors that own these tokens can sell them on an exchange.
To WEB3 natives or anyone from 16-30 years, the world of Trading, Investing, reading charts is a world full traditional players, operating in a system which they are fighting to decentralize .However, by being mindful of both cultures, I do a marriage of convenience here, with a profitable future.
Could the Traditional Investment Funds, about to have their ‘Trading Places’ Moment, with WEB3 ?