Traditional VC vs Investment DAO
vs | Traditional VC | Investment DAO |
---|---|---|
Inclusive | Due to large initial investment needed, mostly viable for sophisticated investors as equity firms, institutional investors or family offices | Open to receiving investments from across the globe allowing any investor to make small contributions |
Governance | Highly centralized, investment decisions through an investment committee made up of a small group of people | A decentralized governance system, where members can vote on investment proposals based on the number of NFTs they hold |
Liquidity Risk | The illiquid asset class with capital invested in these funds being locked for years, not until an exit with a respective project | An NFT derives its value from the underlying basket of crypto assets and investors can liquidate these NFTs at any point in time |
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