The role of DAOs in Venture Capital and funding

Karolina

19 May 2023
The role of DAOs in Venture Capital and funding

The ever-evolving finance and investment landscapes have been significantly impacted by decentralized autonomous organizations (DAOs). DAOs are causing a paradigm shift in the traditional venture capital sector. Blockchain technology enables the growth of these disruptive organizations, which are redefining venture funding and management. DAOs showcase decentralized governance, transparent decision-making, and unique funding approaches. These aspects revolutionize access to capital for entrepreneurs and early-stage investor participation. In this article, we delve into DAOs in venture capital, focusing on their potential to transform the industry, their benefits, challenges, and real-world use cases in shaping funding innovation and entrepreneurship.

Evolution of Venture Capital

Understanding DAOs in venture capital impact requires grasping traditional investment models' evolution. Traditional venture capital features centralization, with few investors controlling funding decisions. This creates entry barriers for entrepreneurs and limits opportunities for a few favored people. Decentralized finance (DeFi) and blockchain technology birthed a more inclusive, accessible option. DAOs use smart contracts and consensus-driven governance, disrupting the venture capital scene. Decentralization principles position DAOs as a new venture capital frontier, enabling a democratic, transparent funding process for innovative projects.

DAOs in Venture Capital and Funding

DAOs represent a paradigm shift in how companies raise capital and manage their operations. They open up new possibilities for venture capital and funding by bringing the following features to the table:

  • Decentralization: DAOs distribute the decision-making authority among its members, eliminating the need for intermediaries or centralized authorities. This makes the funding process more efficient and transparent.
  • Tokenization: DAOs use cryptographic tokens to represent ownership or voting rights. This enables investors to have a direct say in the operation and governance of their investments. (Interested in DAO tokenomics? Check out our article!
  • Smart Contracts: DAOs utilize smart contracts, self-executing contracts with the terms of the agreement directly written into code. These contracts automate many processes, reducing the need for manual intervention and potential for human error.
  • Global Access: Given their decentralized nature, DAOs enable anyone, anywhere, to participate in venture capital funding. This widens the pool of potential investors and fosters global collaboration.

Investment DAO

DAO is transforming the VC industry. Investment DAOs are crucial for sourcing, evaluating, and managing investments. They use blockchain and smart contracts for a democratic, transparent process. DAOs in venture capital pool funds from contributors. This allows for collective decision-making and capital allocation to projects.

A wider range of investors can join early-stage investments. Investment DAOs offer platforms for knowledge sharing and due diligence. This leads to more informed decision-making. Decentralized governance replaces traditional middlemen in these organizations. Investment DAOs have the potential to change the VC industry significantly, promoting innovation and growth for startups inclusively and cooperatively.

More about this topic

Traditional Venture Capital vs Investment DAO

Traditional vs VC Investment DAO (DAOs in Venture Capital)

Success Stories

DAOs in venture capital have made a mark through various success stories, showcasing DAOs' transformative potential in venture capital for innovative projects funding.

MetaCartel Ventures, a pioneering investment DAO, invested in multiple blockchain startups. Their group approach evaluates opportunities, offers guidance, and utilizes networks to fast-track portfolio companies' growth.

Syndicate DAO is known for decentralized finance investments. With group decision-making and thorough research, they've backed Aave, Uniswap, and Compound projects, advancing the DeFi ecosystem.

OrangeDAO is a venture fund of past, present, and future Y Combinator founders who specialize in crypto. Orange DAO also helps startups apply to, and be accepted into Y Combinator, while helping mentor their leadership and recruit talent, and acquire customers.

The LAO, one of the first legal decentralized venture funds, has invested in numerous projects like NFT platforms, decentralized social networks, and blockchain infrastructure projects.

DAO.vc is a decentralized autonomous entity that acts as a service for a pool governed by shared voting on investment projects chosen using a predefined algorithm. 

SeedClub is a DAO that builds and invests in communities. The mission of Seed Club is to assist web3 community builders. They are creating a future in which the value created by online communities is captured by people rather than platforms. 

These achievements underline how investment DAOs disrupted traditional models by offering a more inclusive and decentralized platform. Investment DAOs have proven their capability to detect and support groundbreaking startups, redefining the future of venture capital.

Potential for Future Growth and Expansion of DAO-driven Venture Capital

The future of DAOs in venture capital and funding looks promising. As blockchain technology continues to mature, DAOs are likely to become more robust, secure, and user-friendly, attracting more participation from both investors and entrepreneurs. Furthermore, regulatory clarity around DAOs could also propel their growth in venture capital.

In the future, we may see more venture capital firms incorporating DAO structures to give their investors more direct control over their investments. We may also see more startups choosing to raise funds through DAOs instead of traditional venture capital, due to the transparency, global access, and democratized decision-making that DAOs offer.

Another potential area of growth is the integration of DAOs with DeFi (Decentralized Finance) platforms. This could open up even more avenues for decentralized funding and provide investors with new ways to earn returns on their investments.

Conclusion

In summary, DAOs are transforming the venture capital sector. They employ blockchain technology and decentralized governance for a new approach. This shift from traditional centralized models results in transparent decisions, inclusive capital access, and creative funding strategies.

Significantly, investment DAOs like MetaCartel Ventures, Syndicate DAO, and The LAO demonstrate the potential of DAOs in venture capital. They have successfully backed various projects, spotlighting their skill in discovering and fostering groundbreaking startups. Their accomplishments highlight the inclusive, transparent, and democratized decision-making offered by DAO-driven venture capital.

As we look forward, the prospects of DAOs in venture capital are bright. With blockchain advancements and changing regulations, DAOs will become more secure and accessible to a broader audience. Increased adoption of DAO structures by venture capital firms and startups is expected, as well as integration with decentralized finance (DeFi) platforms. The transformative power of DAOs is creating a decentralized, inclusive, and transparent system that benefits both entrepreneurs and investors.

Most viewed


Never miss a story

Stay updated about Nextrope news as it happens.

You are subscribed

Master UI Component Creation with AI: The Ultimate Guide for Developers

Gracjan Prusik

24 Mar 2025
Master UI Component Creation with AI: The Ultimate Guide for Developers

Introduction

Modern frontend development is evolving rapidly, and creating UI components with AI tools is helping developers save time while enhancing interface quality. With AI, we can not only speed up the creation of UI components but also improve their quality, optimize styles, and ensure better accessibility.

This article explores how creating UI components with AI is transforming frontend development by saving time and improving workflows. Specifically, we will discuss:

  • Generating components from images,
  • AI for style analysis and optimization,
  • Automatic style conversion and code migration,
  • AI in generating UI animations.

Creating UI Components with AI from Images

One of the interesting applications of AI in frontend development is the ability to generate components from an image. AI can recognize the structure of the interface and generate HTML/CSS or JSX code that matches the provided image. One of the most popular tools for UI creation is Lovable.

For testing, let's see how the tool performs in creating a simple contact form from the page you are currently on, which is Nextrope.

Query:

"Recreate the image I've sent you in Next.js using CSS."

Sample image used in the query:

The result received:

Tworzenie komponentów UI - Wygenerowany widok

Lovable did an excellent job transforming the image into code. The view is fully responsive. It’s important to remember that the more precise the request, the better the AI will replicate the expected view. However, even with a simple command, the tool performed surprisingly well.

Of course, AI has its limitations. It still makes quite a few mistakes. The generated code still requires review and fixes from the developer, but in some cases, the entire process is significantly sped up—correcting the code often takes less time than creating the component from scratch.

Optimizing UI Components with AI Tools for Style Improvements

This problem of inaccurate code reproduction by AI can be partially addressed by using it to analyze and improve styles. Tools like ChatGPT, DeepSeek and Claude are capable of not only generating code but also diagnosing CSS errors and suggesting why a particular style might not be working as expected.

Simple example: Why is the div not centered?

Query: "Why is this div not centered?"

AI analyzes the code and provides the following response:

Problem: The parent container does not have a defined width or display: flex.
Solution: Add the appropriate styles to the parent container.

.parent {
  display: flex;
  justify-content: center;
  align-items: center;
  width: 100vw;
  height: 100vh;
}

AI for Automatic Style Conversion and Code Migration in UI Components

AI can assist with style conversion between different technologies, such as transferring code from traditional CSS to Styled Components or Tailwind CSS.

Let's assume we have a style written in traditional CSS:

.button {
  background-color: blue;
  color: white;
  padding: 10px 20px;
  border-radius: 5px;
  transition: background-color 0.3s ease;
}

.button:hover {
  background-color: darkblue;
}

We can use AI for automatic conversion to Styled Components:

import styled from "styled-components";

const Button = styled.button`
  background-color: blue;
  color: white;
  padding: 10px 20px;
  border-radius: 5px;
  transition: background-color 0.3s ease;

  &:hover {
    background-color: darkblue;
  }
`;

export default Button;

AI can also assist in migrating code between frameworks, such as from React to Vue or from CSS to Tailwind.

This makes style migration easier and faster.

How AI Enhances UI Animation Creation

Animations are crucial for enhancing user experience in interfaces, but they are not always provided in the project specification. In such cases, developers have to come up with how the animations should look, which can be time-consuming and require significant creativity. AI, in this context, becomes helpful because it can automatically generate CSS animations or animations using libraries like Framer Motion, saving both time and effort.

Example: Automatically Generated Button Animation

Suppose we need to add a subtle scaling animation to a button but don't have a ready-made animation design. Instead of creating it from scratch, AI can generate the code that meets our needs.

Code generated by AI:

import { motion } from "framer-motion";

const AnimatedButton = () => (
  <motion.button
    whileHover={{ scale: 1.1 }}
    whileTap={{ scale: 0.9 }}
    className="bg-blue-500 text-white px-4 py-2 rounded-lg"
  >
    Press me
  </motion.button>
);

In this way, AI accelerates the animation creation process, providing developers with a simple and quick option to achieve the desired effect without the need to manually design animations from scratch.

Summary

AI significantly accelerates the creation of UI components. We can generate ready-made components from images, optimize styles, transform code between technologies, and create animations in just a few seconds. Tools like ChatGPT, DeepSeek, Claude and Lovable are a huge help for frontend developers, enabling faster and more efficient work.

In the next part of the series, we will take a look at:

If you want to learn more about how AI is impacting the entire automation of frontend processes and changing the role of developers, check out our blog article: AI in Frontend Automation – How It's Changing the Developer's Job?

Follow us to stay updated!

AI in Real Estate: How Does It Support the Housing Market?

Miłosz Mach

18 Mar 2025
AI in Real Estate: How Does It Support the Housing Market?

The digital transformation is reshaping numerous sectors of the economy, and real estate is no exception. By 2025, AI will no longer be a mere gadget but a powerful tool that facilitates customer interactions, streamlines decision-making processes, and optimizes sales operations. Simultaneously, blockchain technology ensures security, transparency, and scalability in transactions. With this article, we launch a series of publications exploring AI in business, focusing today on the application of artificial intelligence within the real estate industry.

AI vs. Tradition: Key Implementations of AI in Real Estate

Designing, selling, and managing properties—traditional methods are increasingly giving way to data-driven decision-making.

Breakthroughs in Customer Service

AI-powered chatbots and virtual assistants are revolutionizing how companies interact with their customers. These tools handle hundreds of inquiries simultaneously, personalize offers, and guide clients through the purchasing process. Implementing AI agents can lead to higher-quality leads for developers and automate responses to most standard customer queries. However, technical challenges in deploying such systems include:

  • Integration with existing real estate databases: Chatbots must have access to up-to-date listings, prices, and availability.
  • Personalization of communication: Systems must adapt their interactions to individual customer needs.
  • Management of industry-specific knowledge: Chatbots require specialized expertise about local real estate markets.

Advanced Data Analysis

Cognitive AI systems utilize deep learning to analyze complex relationships within the real estate market, such as macroeconomic trends, local zoning plans, and user behavior on social media platforms. Deploying such solutions necessitates:

  • Collecting high-quality historical data.
  • Building infrastructure for real-time data processing.
  • Developing appropriate machine learning models.
  • Continuously monitoring and updating models based on new data.

Intelligent Design

Generative artificial intelligence is revolutionizing architectural design. These advanced algorithms can produce dozens of building design variants that account for site constraints, legal requirements, energy efficiency considerations, and aesthetic preferences.

Optimizing Building Energy Efficiency

Smart building management systems (BMS) leverage AI to optimize energy consumption while maintaining resident comfort. Reinforcement learning algorithms analyze data from temperature, humidity, and air quality sensors to adjust heating, cooling, and ventilation parameters effectively.

Integration of AI with Blockchain in Real Estate

The convergence of AI with blockchain technology opens up new possibilities for the real estate sector. Blockchain is a distributed database where information is stored in immutable "blocks." It ensures transaction security and data transparency while AI analyzes these data points to derive actionable insights. In practice, this means that ownership histories, all transactions, and property modifications are recorded in an unalterable format, with AI aiding in interpreting these records and informing decision-making processes.

AI has the potential to bring significant value to the real estate sector—estimated between $110 billion and $180 billion by experts at McKinsey & Company.

Key development directions over the coming years include:

  • Autonomous negotiation systems: AI agents equipped with game theory strategies capable of conducting complex negotiations.
  • AI in urban planning: Algorithms designed to plan city development and optimize spatial allocation.
  • Property tokenization: Leveraging blockchain technology to divide properties into digital tokens that enable fractional investment opportunities.

Conclusion

For companies today, the question is no longer "if" but "how" to implement AI to maximize benefits and enhance competitiveness. A strategic approach begins with identifying specific business challenges followed by selecting appropriate technologies.

What values could AI potentially bring to your organization?
  • Reduction of operational costs through automation
  • Enhanced customer experience and shorter transaction times
  • Increased accuracy in forecasts and valuations, minimizing business risks
Nextrope Logo

Want to implement AI in your real estate business?

Nextrope specializes in implementing AI and blockchain solutions tailored to specific business needs. Our expertise allows us to:

  • Create intelligent chatbots that serve customers 24/7
  • Implement analytical systems for property valuation
  • Build secure blockchain solutions for real estate transactions
Schedule a free consultation

Or check out other articles from the "AI in Business" series