Sirwin
Sirwin

Mapping The LAO Venture Capital Firm


TLDR: All-in-all, it appears the DAO VC firm seems to be a raging success. The DAO is a US LLC, is governed by smart contracts, operates in $ETH and has attempted to automate Dealflow through their "Scout" program. The LAO provides a wonderful framework for how any group of individuals can create a venture firm in the 2020 decade.

OVERVIEW
This morning on our Community Research Call, we discussed a cutting-edge venture capital firm called "The LAO", which launched on April 28th, 2020. We went through the numerous investments The LAO has made as well as their unique structure as a decentralized autonomous organization (DAO). Here is that discussion written out, accompanied by my thoughts. 

The LAO is officially a "member-directed venture capital fund organization in the United States, with an aim to be compliant with U.S. law." The  organization, which is legally structured as a Delaware limited liability company (LLC), was initially capped at 100 members, who contribute Ether (ETH) to the organization by purchasing LAO Units", or units representing an ownership in the organization. There is currently a proposal to accept new members to LAO (1). Membership is unfortunately limited to accredited investors. This is something I hope DAO's change in the future. 

From their homepage, we can see they have 12,177.08 ETH contributed ($7.25M) and 7,084.57 ETH deployed ($4.2M) or approximately 58%. 

INVESTMENTS

If we look to their Investments page, we find 31 investments funded and 2 currently being voted on. 12 of these investments are publicly shown on their website. Commendations are in order, as The LAO has one of the most-informed reads on their portfolios companies (PortCo's) of any VC firm. 

PUBLIC INVESTMENTS

The 2 organizations pending vote are: 

GOVERNANCE

On the Governance page we can see they have had 10 proposals, of which 8 have passed. The only public proposal is the proposal approving the acceptance of new members to the LAO. 

PROJECTS

On the Proposals page, we can see they have 67 outstanding Projects that have submitted to the DAO and been made public. Many names are public and provide us with great insight into the cutting edge of decentralization and crypto. 

Public Names include:

SCOUTING PROJECTS

The Scout page could be the coolest part of the whole DAO. As a social experiment, the DAO is attempting have the community organically create a continuous list of the best crypto projects. They are trying to automate something called Dealflow (high quality investment opportunities continuously coming through the door). We are trying to do the same thing with our Crypto Research Community.

The DAO has created a Token Curated Registry (TCR). "A token curated registry (TCR) is a list that is managed by a public group of token-holders". You can see a list of the Top Projects on the Scout page in the link above. Most were added about 7 months ago, so it does not appear the social experiment lasted in the short term (although we did have a project added 7 days ago). 

The current list includes 35 projects. Here are a lo of their Twitters. Check the names after https://twitter.com/

APPLICATION FOR FUNDING

Per the Apply page, organizations can apply for funding between $50K-$100K (if not more) and funding if provided in ETH. Members can put up organizations for the LAO to vote on. 

MENTORS

Checkout the Mentors page for a list of, presumably, Members of The LAO who would also be wonderful follows on Twitter. 

BECOMING A MEMBER

Based on their Verify page, new members can contribute anywhere from 310 ETH (approx. $185K) to 2,790 ETH (approx. $1.6M).

CONCLUSION

All-in-all, it appears the DAO VC firm is a raging success. The DAO is a US LLC, is governed by smart contracts, operates in $ETH and has attempted to automate Dealflow through their "Scout" program. The minimum investment amount of 310 ETH is too high for the retail investor, but The LAO provides a wonderful framework for how any group of individuals can create a venture firm in the 2020 decade. 

Here is the start to making your own DAO VC: https://github.com/openlawteam/TheLAO

LINKS

Homepage - https://www.thelao.io/

Investments - https://www.thelao.io/investments

Proposals - https://www.thelao.io/proposals

Apply - https://www.thelao.io/apply

Scout - https://scout.thelao.io/

Mentors - https://www.thelao.io/mentors

Governance - https://www.thelao.io/governance-proposals

Documentation - https://docs.thelao.io/

(1) - https://www.thelao.io/governance-proposals/QmYWyqesuVTvngwKFhhmAzDrLbJTJYav4d3P21swF4HiYd

Github - https://github.com/openlawteam/TheLAO

You don't need to be a VC to have a research community.

Join us on YouTube weekday mornings between 830ish-930ish (PST - US) for A.M. Crypto Research Call. 

Crypto Cartography YouTube channel: https://www.youtube.com/channel/UCe-HvJnTz6qUkxrYvJXofFA

Join a Crypto Research community: https://discord.gg/dEbktgxZbH

Twitter: https://twitter.com/MrCartographer_

 

Please note: The material presented in all articles is for educational purposes only and is not intended to be investment advice. Do not invest in the organizations I provide analysis about. This is not investment advice. Crypto Cartography, including its principal, is not a financial advisor. Please seek professional investment & tax advice before investing.

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Crypto Cartography
Crypto Cartography

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