dao5 Raises $222M for Blockchain Projects, Aims for Institutional Adoption

Crypto investment firm dao5 has successfully raised a $222 million fund, which will be dedicated to investing in blockchain projects aimed at institutional and government adoption. This significant fundraising effort brings the firm’s total assets under management to $550 million.

Founded in 2022 by Tekin Salimi, a former partner at Polychain Capital, dao5 has already made strategic early investments in several promising projects, including Story Protocol, Bittensor, Berachain, and EigenLayer. These investments reflect the firm's commitment to identifying and supporting innovative blockchain technologies with high growth potential.

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The firm’s first fund, launched during the final days of the last bull market three years ago, has been fully deployed and has already returned “the vast majority of commitments to its limited partners,” according to a press release. This success underscores dao5's ability to generate substantial returns for its investors, even in a challenging market environment.

Tekin Salimi, the founder of dao5, commented on the current state of the crypto industry, stating that “Crypto is entering its adolescence phase. The industry’s dependency on pure speculation as the driver of growth is no longer as effective as it once was.” He emphasized that future success in the industry will depend on the real integration of blockchain technology into global financial, governmental, and private sector systems.

The new fund will focus on three key areas: on-chain public infrastructure, novel stablecoin systems, and state-sovereign artificial intelligence. These areas are seen as critical for the long-term growth and adoption of blockchain technology, as they address fundamental challenges and opportunities in the industry.

In addition to the fundraising, dao5 plans to convert its fund into a decentralized autonomous organization (DAO) later this year. This move is part of the firm's strategy to support its expansion and align with the growing trend of decentralization in the crypto industry. To support this transition, the firm has added George Lambeth as a General Partner. Lambeth has a proven track record of backing successful projects, including Avalanche and Celestia, and his expertise will be invaluable as dao5 continues to grow and evolve.