Is It Possible For DAOs to Democratize Fundraising?

Entrepreneurs are starting to deploy their businesses and brands with government assistance or bootstrapping. Unfortunately, leaning on the government to back their invention is highly inconvenient due to strict restrictions. This is due to a long chain of command and a horrendous bureaucracy. On the other hand, several issues may constrain a bootstrapped startup. The most significant is a low budget and a smaller network of high-net-worth individuals. Despite their bumpy start in the late 1900s, innovation and unicorn startups have had the support of venture capital companies for several years. They do this by bypassing the constraints that come with asking the government for financing or trying to bootstrap a business. They could accomplish it by putting up a lot of capital in return for a lot of equity. On the other hand, Venture Capitalists (VCs) have their own set of problems that Decentralized Autonomous Organizations (DAOs) might be able to tackle. The Challenges that Venture Capitalists Pose to Startups One common problem startup entrepreneurs face is a lack of faith in their idea because it is “too far out there.” Many people are reluctant to invest in a startup because they believe the money will be wasted on overhead. This is especially true for extremely inventive startups that most VCs find difficult to understand. Another major issue venture investors have with businesses is discouraging them from taking risks. T...