10 Benefits of Decentralized Venture Capital Nobody is Talking About

Smart Contract Trust

Actual Stacker Ventures READ.md file on Fund 1 on GitHub

Onchain Transparency

As a practical example, you can view all transactions for the the Stacker Venture Fund1 SVC001 token on chain here.

Crypto Project Demand Is Greater Than Available Capital

It’s no surprise that the most in demand software development jobs right now are in crypto.

https://merehead.com/blog/what-are-the-salaries-of-blockchain-developers/

Deep Pockets of the Middle Class

Photo by Luke Chesser on Unsplash

Tokenized Fund Allocation

It’s one thing to raise funds and then distribute fund allocation back to investors, but it’s an entirely different thing when the fund allocation is represented in a standard ERC20 token that can be traded natively on Ethereum.

Actual liquidity for Stacker Ventures SVC0001 Fund 1 Token on Sushiswap

Rapid Fund Deployment and Fee Savings

Imagine you’re a project looking for funding. You put together your pitch deck, present and get a $1M deal.

Deep Bench of Expertise

Photo by Gilly on Unsplash

DAO Decisions

Actual DAO proposals for Stacker Ventures.

DAOs are an inclusive, transparent and global model for human coordination.
— AragonDAO

Now, of course, DVCs do not have to be run by DAO, but if you want to truly empower the community (typically token holders) and truly decentralize the organization, then there isn’t a better way than being able to physically empower the community with true onchain voting to change virtually anything about the project structure, especially with states like Wyoming in the United States of America legally recognizing them.

Product Diversification

Active Yield Funds by Stacker Ventures are example of product diversification in action

Maximum Capital Efficiency

Screenshot of Stacker Ventureds Fund1 showing 1,475 stackETH

Closing Thoughts

Like many verticals leveraging the power and flexibility of blockchain development, Decentralized Venture Capital projects are changing the way project fund raising works by rapidly expanding the pool of investors to meet the increasing demand for project capital while simultaneously maximizing yield by offering innovative product diversification which leverages established and reputable money markets.

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