Decentralizing Venture Capital: An Analysis of the Current and Future State of Investment Decentralized Autonomous Organizations
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Date
2023
Authors
Wong, Ethan
Journal Title
Journal ISSN
Volume Title
Publisher
University of Oregon
Abstract
For over half a century, venture capital (VC) has been a staple of the startup ecosystem as a source of funding. Venture capital firms have historically backed some of the most well-known companies today, including Meta, Google, Uber, and countless others. More recently, VC firms have started setting their sights on a new category of startups that are hoping to lead the way to a more decentralized world by leveraging blockchain technology. Among the many applications within this space includes an emerging and alternative model for traditional VC that is facilitated through Decentralized Autonomous Organizations (DAOs). Historically, investing in venture capital funds has been limited to large institutions and high net worth individuals. However, the emergence of DAOs modeled as VC funds could potentially increase accessibility for a larger pool of investors to gain exposure to cryptocurrency and blockchain-focused startups and earn the astronomical returns that were a privilege previously limited to a select group. This thesis serves to examine the advantages and challenges of DAOs as venture capital investment vehicles and analyze the potential role that DAOs may eventually play the venture capital landscape.
Description
106 pages
Keywords
Venture Capital, Cryptocurrency, Blockchain, Securities Regulation, Startups