125 Interactions, 6 Today
One of the most compelling selling points for Andreessen Horowitz was Syndicate’s idea for decentralised autonomous groups.
Andreessen Horowitz, a venture capital firm located in California, revealed on Tuesday that it is heading a Series A funding round for Syndicate, a decentralised platform with the lofty goal of democratising investing by enabling users to construct decentralised autonomous organisations, or DAOs.
Ali Yahya, one of Andreessen’s general partners, said that the company was attracted to Syndicate’s vision of DAOs being at the center of economic coordination between people. DAOs, which are internet-native organizations that are collectively owned and managed by community members, have the potential to replace the archaic legacy systems currently in use.
The Andreessen executive compared DAOs with corporations, arguing that the former “are a better, digitally-native mechanism for human coordination” because they replace existing enterprise functions with software code.
Syndicate launched a private beta version of its platform in June after raising $800,000 from several investors. In March, the company generated $1 million in seed investments led by Ideo CoLab Ventures.
Series A funding is often pursued by budding startups that are looking to scale their operations through outside investments. Companies that reach this stage have developed a solid track record or established a promising user base. While Andreessen Horowitz didn’t specify a target for the Syndicate investment round, most Series As raise less than $20 million.
This year has seen a surge in venture funding for the blockchain industry, as investors seek to capitalise on promising use cases leveraging distributed ledger technology. Andreessen Horowitz has been at the vanguard of these capital raising, recently launching the largest-ever crypto venture fund with a $2.2 billion investment. Platforms devoted to bitcoin trading and nonfungible tokens have lately witnessed some of the largest fundraising rounds to date.