Do you think DAOs could replace the funding portals and investment crowdfunding?

1 Answer, 2 Replies
Elizabeth Carter
Elizabeth Carter  replied:

Yes to funding portals (and probably should) and no to replacing investment crowdfunding. Rather, DAOs will most likely use investment crowdfunding to fund its projects.

Brian Christie
Brian Christie  replied:

It seems that Tennessee is now joining Wyoming as two states that allow DAOs to be formed as LLCs in their states.

If this is going to be a continued trend, then perhaps the CfPA could help issuers look at the pros and cons of using a DAO vs a FINRA approved investment portal?  

Elizabeth Carter
Elizabeth Carter  replied:

Well, those individuals raising capital - even through a DAO - will need to find an exemption for that capital raise (i.e. Reg A+, Reg D, or Reg CF). However, if they raise capital through Reg CF - then a regulated crowdfunding portal will still be needed. Thus, an additional question could be: can a registered crowdfunding portal be structured as a DAO?