Crypto Firm Dao5 Swims Against the Current: Closes $222M Fund

Even with the reported problems that traditional firms are having to raise capital, 2022-founded Dao5 has reached a milestone.

Crypto venture firm Dao5 has raised $222 million for its second fund, continuing its journey despite the difficulties reported by traditional firms to mobilize capital.

The company, founded in 2022 by Tekin Salimi, is known for its unique approach to venture investing, combining deep technological expertise with a focus on fostering a supportive community for the startups in its portfolio.

As reported by Fortune, the fund saw participation by a small group of family offices and high-net-worth individuals, who were attracted by the impressive returns generated by Dao5’s first fund.

Investors in the previous fund, which began with $125 million in commitments, have already recovered their initial investment, a testament to the firm’s success in navigating the volatile crypto landscape.

Salimi credits this success to the close-knit community that Dao5 has cultivated and the full suite of services offered to its portfolio companies.

“Sometimes the job of VC can range from everything to investor to close friend and then therapist of these young founders,” Salimi remarked, highlighting the deep involvement that Dao5 strives for.

This close integration with the startups allows Dao5 to provide comprehensive support in areas such as token economics design, liquidity management, and strategic partnerships, enabling the ventures to maximize their potential.

Furthermore, Dao5’s commitment to its partners is evident in its decision to remain invested in the startups even after the initial fund has completed its cycle.

This strategy, which Salimi describes as "patient capital," aligns with the long-term vision of the venture firm to contribute to the enduring success of the projects it supports.

As Dao5 pivots towards a new chapter with its second fund, the focus shifts from "extremely sci-fi projects" to more practical solutions for institutional adoption.

This includes investments in crucial infrastructure like stablecoins and asset tokenization products, which are becoming increasingly critical for mainstream acceptance of Web3 technologies.

"It’s almost like the less sexy products are now more important," Salimi noted, highlighting the evolving priorities in the rapidly changing crypto ecosystem.

This shift in investment strategy reflects Dao5’s adaptability and responsiveness to the evolving needs of the industry, positioning the venture firm for continued success in the years to come.

As Dao5 continues to make waves in the crypto space, the firm’s commitment to community, technology, and patient capital sets it apart in the competitive landscape of venture investing.

With a focus on enabling institutional adoption and supporting the long-term vision of Web3, Dao5 is poised to play a pivotal role in shaping the future of the digital economy.

This article was originally published on ChainEdge.

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