Syndicate’s vision for decentralized autonomous organizations was one of the biggest selling points for Andreessen Horowitz.
California-based venture fund Andreessen Horowitz announced Tuesday
that it is leading a Series A investment round for Syndicate, a
decentralized platform with the lofty vision of democratizing investing
by allowing users to create decentralized autonomous organizations, 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.
Related: 5G blockchain network raises $111M in Andreessen-led token sale
Venture
funding has poured into the blockchain industry this year, as investors
look to capitalize on promising use cases involving distributed ledger
technology. Andreessen Horowitz has been at the forefront of these
capital raises, having recently launched the biggest-ever crypto venture fund at $2.2 billion. More recently, platforms devoted to cryptocurrency trading and nonfungible tokens have seen some of the biggest funding rounds to date.
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