Quick take:
- Seed Club has launched its venture arm with a $25 million venture fund.
- The fund will invest in DAO-focused projects.
- Seed Club Ventures is backed by Multicoin Capital, Dragonfly Capital and Delphi Digital, among others.
Seed Club’s venture arm has emerged from stealth with a $25 million venture fund focused on DAO projects. The fund is backed by Multicoin Capital, Dragonfly Capital and Delphi Digital, as well as family offices, traditional VCs and corporations that make up its 63-member DAO. About half of the members are crypto-native individuals.
Seed Club sees itself as “a DAO for builders made up of an accelerator program, a community of members, and now a venture arm,” Anthony Avedissian, one of Seed Club Venture’s co-founders told TechCrunch.
The project is inspired by the drive to shift from web2 platforms like YouTube to decentralised creator economies built on web3. Although Seed Club’s venture arm is just coming out of stealth, it has been investing in projects since 2021, according to Avedissian, who prefers to be referred to as one of the “instigators”, rather than co-founders.
The fund has invested in the likes of Guild— a web3 community-building platform for games, open source AI startup Stability AI, web3 social profile management solution Lens Protocol, and Metalabel, an operating system that allows creators to work as groups on projects.
Commenting on his company’s involvement in the DAO, NiMa Asghari, instigator at Seed Club Ventures said: “We feel like now is the right moment for the internet and for crypto for communities to have ownership. “Crypto is definitely one of the big pieces of the puzzle, but we felt this philosophy was missing that communities can have ownership and have a source of funding, and we want to be an example of that.”
The fund will be invested in web3 infrastructure, DAO tooling, decentralised apps and open communities at pre-seed and seed stages over the next two years, with projects handed checks ranging from $100,000 to $1 million, said Avedissian.
Decentralised Autonomous Organisations (DAOs) allow web3 communities to participate in the ownership and governance of platforms that they use, like blockchain games, and token-gated social experiences.
However, Asghari thinks that the idea has been relatively overblown in terms of the DAO tools on offer in the market compared to those looking to establish governable DAOs.
“We’re seeing projects maturing and going from this paradigm of all-in-one tooling in the DAO space to being more modular and open, and that’s one of our core values. We don’t want to invest in just one ‘Salesforce’ in the DAO space; we want to back many projects and have them interoperate together,” Asghari added.
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