Crypto Fund Dao5 Secures $222 Million for Institutional Blockchain Projects – Coincu

Dao5, a crypto venture capital firm, announced on May 1 the conclusion of a $222 million fundraising round to focus on institutional blockchain projects. The investors include family offices and high-net-worth individuals.

A shift in the venture capital landscape highlights a movement towards institutional blockchain applications. Current market funding trends emphasize stablecoins and asset tokenization, reinforcing growth in the sector.

Dao5’s $222 Million Fund Marks Institutional Shift

Dao5, founded by former Polychain partner Tekin Salimi, raised $222 million in its second funding phase. This venture capital firm focuses on institutional blockchain applications, particularly stablecoins and tokenization. The completion of this fund, which follows a successful first round, signals a growing investor interest in blockchain infrastructure. Salimi credits the first fund’s performance, which achieved a 1x DPI, as key to this fundraising success.

Institutional blockchain applications are emerging prominently, and dao5’s fund plans to invest in 15-20 early-stage projects. This includes a strong focus on stablecoins and asset tokenization. Salimi said, “The industry’s dependency on pure speculation as the driver of growth is no longer as effective as it once was.” This pivot aligns with broader market trends.

“I credit that to a big part of why we’re able to have a successful fundraise in this market,” – Tekin Salimi, referencing the 1x DPI outperformance of the first fund as a magnet for new capital.

New Leadership and Strategic Focus on Stablecoins

Did you know? The first dao5 fund achieved a 1x DPI, indicating full repayment to its initial investors, showcasing strong initial success and encouraging further investment.

According to CoinMarketCap, Ethereum (ETH) currently trades at $1,839.41, with a market cap reaching $222.08 billion and a 24-hour trading volume of $15.05 billion, marking a 2.30% rise in the past day. Price changes show a 4.16% increase over the past 7 days but a decline of 44.71% in the last 90 days.

Coincu research team analysis suggests this fundraising effort marks a trend toward more institutional penetration into blockchain sectors. Emphasizing stablecoins and tokenization could facilitate increased adoption from traditional financial entities, potentially broadening the blockchain’s impact on global economies.