CreatorDAO raises $20 million to invest in creators
CreatorDAO, a Santa Monica-based company that invests in creators by providing capital, technology and operational support, announced Aug. 9 that it has raised $20 million in a seed funding round led by a16z crypto and Initialized Capital, with participation from Liquid 2 Ventures, M13, Audacious Ventures, 6th Man Ventures, and Abstract Ventures, to name a few. Other prominent investors include Paris Hilton, The Chainsmokers, Michael Ovtiz and Liam Payne.
CreatorDAO – DAO stands for Decentralized Autonomous Organization – invests in creators in exchange for a percentage of their future earnings. The DAO structure allows investment decisions to be outsourced and contributions to the organization such as mentorship and collaboration are rewarded.
With the rise of cryptocurrencies and NFTs, DAOs have grown in popularity over the past year. Members of these organizations generally share a common interest ranging from investing to collecting. A DAO has access to specific funding and, as a community, chooses how the money should be used or distributed. For example, a DAO Collector could choose which NFTs to buy, sell or trade as a group and the proceeds are shared among the members.
Top creators like Olympian Shawn Johnson and YouTube engineer and creator Joma Tech have already signed up to share their time with the DAO creator community.
“More than $300 billion in venture capital (was) invested in tech startups in 2021; less than $100 million of investment has gone into creators. Today’s creators are businesses, but no one has figured out how to help them realize their growth potential,” Michael Ma, CEO and co-founder, along with Jonathan Wald, of CreatorDAO said in a statement. “It’s a similar investment void that Y Combinator and angel investors filled for tech entrepreneurs 17 years ago.”