Investing in startups is a field largely led by high-profile venture capitalists and institutional players who can leverage their networks, connections, and brands to negotiate better investment conditions and earn more.
These privileges are not often made available to retail investors as most of the deals are conducted behind closed doors.
Project developers, on the other hand, often struggle with getting funds, connections, and a strong marketing team to help push their projects to retail investors, as that is a major role that venture capital firms provide.
In an attempt to introduce more competitiveness and innovation in this regard, DAOLaunch was founded.
What is DAOLaunch?
DAOLaunch is a decentralized venture capital platform that helps connect investors and startups directly via innovative fundraising solutions.
The platform eliminates all third parties and allows users to seamlessly create and support new startups from every industry and participate in flexible and transparent financing rounds, both crypto and non-crypto.
DAOLaunch aims to provide an open and competitive environment where users who are branded as Decentralized Venture Capitalists can negotiate investment terms like traditional venture capital firms.
How Does it Work?
The platform offers a financial product creation platform that allows users to create and support new products in financial markets across all frontiers, regardless of their status as crypto or non-crypto startup.
Creating new and in-demand financial products using DAOLaunch doesn’t require users to have any prior coding knowledge. Using smart contracts, the platform ensures that every recorded investment is not editable once the contracts are deployed.
The DVC-NFT Token
Investors in the DAOLaunch ecosystem can mint the Decentralized Venture Capital NFT (DVC-NFT) to gain more leverage and improve their experience on the platform.
It requires 1 DAL token to mint the DVC-NFT. The latter allows investors to get a more favorable token allocation, seed price, and several other exclusive benefits that are usually given to venture capitalists.
Each DVC-NFT has a different VC power, and this determines the investment allocation and other benefits that an investor has on the platform. The tokens give investors the power to vote and record their performance on the blockchain whilst negotiating better terms.
VC powers are granted to investors based on their level of contribution and loyalty to the DAOLaunch network. It can also be awarded on merit based on past voting record performance.
Features of DAOLaunch
DAOLaunch offers investors access to a number of features, including
- Initial Buy-back Offering (IBO)
Investors can vote for their preferred projects using the capabilities of the DVC-NFT token. The team claims that the process is fully decentralized. Once voting is completed, the native tokens of most voted startups are directly purchased via a buy-back system from DAOLaunch after they are listed on the market using an allocated grant.
The tokens purchased using the Buyback system are automatically burned, and capital gains are distributed among investors.
- Create VC Portfolio as NFT
The DVC-NFT token allows users to create their token index portfolio as an NFT, as it allows holders to deposit and withdraw any ERC-20 asset into an NFT.
Users can deposit all their seed tokens obtained on DAOLaunch in the contract, which will be transformed into their seed index portfolio as recorded as an NFT.
- Trade or Lend VC Portfolio as NFTs
Investors have the option of trading their VC portfolios or lending them out to earn capital or interest without losing ownership. The token index portfolio allows investors to negotiate better investment terms.
- Farm Limited NFTs to stake tokens
Lastly, the platform allows all startups to create an NFT incentive program for their token holders. Investors can explore more of their favorite NFT to stake their native tokens.