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CreatorDAO raises $20 million in VC funding to mentor and fund content material creators in return for a share of the creators’ earnings.
CEO and co-founder Michael Ma sees the corporate changing into the Net 3 model of enterprise capital agency Andreessen Horowitz, from which it raised a portion of its funding.
CreatorDAO got here out of stealth to make the announcement and didn’t elevate funds utilizing an initial coin offering. Preliminary coin choices are token gross sales used to boost funds for Net 3 and cryptocurrency corporations in an identical vein to how a standard firm would host an preliminary public providing or IPO. Elevating funds utilizing ICOs lowers the barrier to entry and democratizes entry to investments.
Decentralized Autonomous Organizations (DAOs) have come in all sizes and styles and for diverse functions.
In Sep. 2021, Andreessen Horowitz invested $5 million in a Discord chat comprising crypto fanatics and artists that later morphed right into a DAO, elevating $10 million. This fundraising underscores the worth potential of on-line communities that collect on social media platforms.
In Nov. 2021, Structure DAO turned the primary DAO to bid for a uncommon copy of the U.S. Structure at a Sotheby’s public sale. The DAO consisted of 17000 donors, which raised $40 million, demonstrating the idea of a bidding DAO, although it lost to Citadel CEO Ken Griffin.
Not technically a DAO but
There’s a third class of DAOs setting as much as disrupt the enterprise capital house by elevating cash from Net 3 traders and deploying capital to tasks, inserting people on equal footing with conventional enterprise capital companies. That’s the category CreatorDAO falls below, albeit with a barely totally different working mannequin.
Initially, creators is not going to want to purchase a governance token to learn from mentorship however might want to apply to the DAO. Shortlisted candidates stand to obtain teaching from Paris Hilton, an angel investor in CreatorDAO, two former NFL gamers, and others. Creators would wish to pay the DAO from income from their enterprise actions.
The shortage of a governance token implies that CreatorDAO isn’t a real DAO. Not less than, not but. It’s nonetheless extremely centralized till a nucleus of mentors is about as much as coach its future members. Communications and logistics nonetheless have to be ironed out, in keeping with Ma. The introduction of a governance token will herald a transition to larger autonomy.
Potential within the creator financial system
CreatorDAO has raised funds from Hilton and her 11:11 Media firm, former One Path singer Liam Payne and the Chainsmokers. It additionally obtained funds from M13, Audacious Ventures, 6th Man Ventures, and Summary Ventures.
Ma and co-founder Jonathan Wald see nice potential within the creator financial system. Ma hopes to create a distinct segment for followers of creators within the DAO that may obtain awards for supporting artists throughout the DAO.
Cash from the seed spherical shall be used for establishing infrastructure and contributing to new creators.
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