"We will have a billion VCs by 2040. Crypto will turn everyone into investors." - @balajis
@SyndicateDAO is simplifying the process for people to form and use DAOs to invest.
Let's see why that's so important 👇
1/ Keeping your money as cash in the bank is the same as choosing to invest your earnings in fiat.
Most people have heard the adage "don't put all your eggs in one basket".
2/ But for some reason, people think fiat currency is an exception.
If you want to truly diversify your net worth, you can't have the majority of your earnings locked up in a savings account.
3/ Then why don't more people invest some of their fiat elsewhere?
Well, what options do retail traders have today?
Stocks, Residential Real Estate, Options, Retirement Funds, etc.
4/ Currently, investing isn't glorious.
You have to be an accredited investor in order to invest in more lucrative assets such as start ups.
Most things people really want are controlled by mega corporations with huge balance sheets.
5/ For example, in Real Estate: 5-star hotels, conference centers, multistory buildings, etc.
In culture: sports teams, art, live shows
In business: startups.
And in crypto: (expensive) NFTs, Tokens
6/ Retail investors don't individually have enough capital to buy expensive assets.
So why don't more people pool their capital together and invest?
7/ It's unnecessarily complicated.
Legal overhead, fees, and a lack of trust.
It costs $8k just to set up a special purpose vehicle (SPV).
Raising money is difficult if you don't have the right connections.
Also, most people don't qualify as accredited investors.
8/ We need a technology that unlocks the power of investing.
Crypto - more specifically, DAOs - are doing just that.
DAOs makes coordinating people and capital as easy as starting a group chat.
9/ As crypto goes mainstream, people will be setting up DAOs to invest with others for various assets, communities, missions, etc.
Well, isn't it possible to start a DAO right now?
What's holding us up?
Lack of guidance and poor UX.
10/ This is where Syndicate comes in.
I think of the protocol as the Squarespace and WordPress of web3.
These sites brought the no-code solution for developing and using websites.
I believe Syndicate will bring that same experience for on-chain investing.
11/ Syndicate is creating the interface that people will use to spin up decentralized investing syndicates.
Investing will be as simple as joining a FB group.
12/ Some templates being used right now (beta mode):
1. Community Ownership (i.e. IDEO Lab founders giving tokens to each other)
2. Ecosystem Funds (i.e. Terra Ecosystem)
3. Collector and NFT funds
As the product grows, we'll see a variety of templates on starting various DAOs.
13/ One interesting point I caught from @WillPapper and @ianIDEO was the emphasis on having a social network and curation layer on top of the Syndicate Protocol.
Today there are digital media curators. In the future there will be DAO curators.
14/ Investing will be in the metaverse (NFTs, Tokens) and IRL (real estate, web2, culture).
However, we still have a ways to go to reach Balaji's prediction of 1 billion VCs by 2040.
15/ I believe the crypto community needs to work on:
1. Educating people about DAO governance, smart contracts, & micro-investing.
2. DAO tools & UX have to become exceptional.
3. Legal complexities and concerns have to be cleared.
Syndicate is helping solve these shortcomings.
17/ Check out this cool scrolling banner of use cases on Syndicate's website.
It gave me perspective on how there is a never ending number of groups that need to raise capital.
18/ If you are looking to learn more about DAOs and Syndicate, check out this episode of GTS with Syndicate founders @WillPapper and @ianIDEO.
a16z-live.simplecast.com/episodes/good-…
19/ Summary of what was covered about @SyndicateDAO:
1. DAOs help coordinate capital
2. Syndicate is creating tools to simplify the process to invest on-chain
3. They are becoming the social network for on-chain investing
4. More investing opportunities and need for DAO curators
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.