Startup Funding Espresso – Forming Capital With DAOs

Forming Capital With DAOs

Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing.

DAOs or Distributed Autonomous Organizations align a group of people toward a common goal.

Forming capital is often part of the process of achieving that goal.

Here are some key points in forming capital with your DAO:

The DAO should coordinate the members of the community and help achieve their goals.

The members should control the code and not the developers.

There needs to be tokens distributed for work performed in addition to capital invested.

A fundraiser for a DAO must include the amount to be raised, the tokens to be offered, and the rights those tokens bring to investors.

Determine in advance what type of tokens will be used such as stablecoins or your own coin.

Stablecoins remove the risk that comes from your own coin.

The cap table is formed when the funds are raised and the tokens are distributed.

Once the funds are raised they must be allocated between the treasury, yield farming and operations.

Raising for a DAO is no different than raising for a startup.

First, access your network.

Second, draw the circle wider and access those related to your network.

Use the success of the first raise to fuel the second.

 

Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.

Let’s go startup something today.

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