Discussion: VC DAO

[tartakovsky]

So the VC DAO idea has been popping up many times. Let's argue about it here and provide all the arguments and counter arguments in one place.

The idea is that the DAO's funds can be used to invest into projects, e.g. buying pre-sales and whatever.

Let's debate.

[tartakovsky]

My take:

• Good projects won't come looking for an investment. Bad projects will and there will be many. Filtering out close to all of them is quite a daunting task and requires a lot of vc experience. We have no good vetting pipeline and we can't hire a dozen analysts as VCs do.
• Making investment decision by committee is unlikely to work. Things that everyone agrees on are usually already too late / popular. Really good investments are usually made against the crowd when nobody believes yet.
• Legal hell in the future.
• DAO doesn't have that much liquid cash to play with.

[nullbitx8]

I agree with all the points highlighted above. Especially potential future legal hell. I don't think our DAO should make investments on behalf of its members. I think our DAO is more community focused.

I had an idea earlier in discord, pasting it below.

Had an idea for what our partnership proposal template.
Thinking freely here, perhaps people more experienced in the field of angel investing can offer insight.

Would there be a win-win situation where LobsterDao members can angel invest in projects that are looking for such an investment?

I'm sure there are now LobsterDao seniors that may be looking to make such investments.
And also someone that buys a lobster on secondary market could fit the profile of an angel investor.

I was thinking this idea would work more like a periodically hosted event by the DAO, where projects can approach DAO members that are interested in angel investing.

It wouldn't be an investment from the DAO specifically. Just that the DAO would set up the format for LOBS holders to individually make investments in projects if they choose.

For example, "Angel Tuesdays" where projects looking for angel investments can approach LOBS holders and pitch them. Leveraging our community to provide benefit for LOBS holders and community projects, but not with specific investment from the DAO treasury.

[kkkrackpot]

I'm against it. Both successful Buffet-style 'value investing' and Milken-style 'junk trading' is not something to be taken lightly. It requires a good amount of experience, research, and luck. Even if some lobs have necessary skills -- will they agree to put a decent amount of work into it? 'Half-hour a day' is clearly not enough.

I'm a literally the smallest shrimp in some private 'ICO' fund. So far its speculations go pretty well -- with a bull market and a dedicated centralized decision team. And I doubt the DAO can replicate it easily.

Besides, 98 eth is not muh moneys nowadays.

That said, I would support a more traditional farming -- with security of funds as a top priority.

Grants/loans/pre-sales can be done by the DAO, but as an 'exception', and not as ongoing activity.

Of course, projects should have an opportunity to reach the DAO members, and maybe some of them will agree to enter those games, as individuals with own funds.

[gas1cent]

What would be some benefits for the project in getting the DAO money vs VC or angel money? On the surface, it would be harder for them to convince 200 random people and they can just make direct deals with those who liked the pitch deck.

[cryptographicas]

Agree with the above statements regarding the DAO operating as a traditional VC.. however I would highlight that many in the lobster dao community are founders/builders. Perhaps the dao could consider funding existing community members new projects/ideas if a sufficiently good proposal is made.

[Pivomansu]

everything goes to the fact that in the near future the DAO will be forced to register as a legal entity. Therefore, it is obvious what risks this carries and I doubt that community members will agree to accept such risks. There would probably be a more effective model for creating a pitch desk, so that startups can present their projects on discord and can find Angle investments or advising from members of the Lobster DAO.

[kkkrackpot]

everything goes to the fact that in the near future the DAO will be forced to register as a legal entity.

Why exactly the DAO "will be forced to register as a legal entity"? What is that 'everything' exactly? Personally, I don't see anything what would make someone think so. Neither I will support any activity what can require the DAO to go through any legal shit like that. (not to mention that personally I'm against the VC/ICO/etc. idea at all, even anonymously)

[Pivomansu]

Under the new project crypto regulations in EU, DAO will be equivalent to the entity. I mean its only project but who knows how itll proceed. In any case, as long as the Lobs DAO remains a unifying community structure, and not a money-making company, we are not in danger I`m also against Lobs DAO as VC actually:)

[kkkrackpot]

Under the new project crypto regulations in EU, DAO will be equivalent to the entity. I mean its only project but who knows how itll proceed. In any case, as long as the Lobs DAO remains a unifying community structure, and not a money-making company, we are not in danger I`m also against Lobs DAO as VC actually:)

EU regulation is EU's problem. US regulation is US problem. Vanuatu regulation is Vanuatu's problem, etc. They can go try to enforce it somehow, their right. But I dont see why the DAO should bother with all that 'regulation' shit. Except when it itself decides to go into the regulated shit, e.g. to have an EU bank account.

[tartakovsky]

Okay, I don't see any support for this or ongoing debate. Closing.