Stacker Ventures is an open protocol for seed-stage investing that aligns the incentives of community investors with promising projects. Structured as a DAO, Stacker Ventures initiates decentralized venture funds, accelerates portfolio investments through an involved community, and provides checks and balances to fund management.
Each fund benefits from the option of a Due Diligence Committee that facilitates investments without any direct control of capital, while smart contract controls provide:
automated enforcement of fund parameters and capital protection mechanisms
access for everyone
and an involved community!
Stacker Ventures Fund 1, initiated by core contributors from the Stacker Ventures community, is currently open to contributions and will leverage the Stacker Ventures DAO to incentivize and conduct due diligence on applicant projects. Skip to Fund 1 Details
There are two main things that every early-stage project covets: capital with which to iterate, and a community of early adopters. Early adopters facilitate the dialogue between the entrepreneur and the market, but are not often rewarded for this essential service. Stacker Ventures offers early adopters the opportunity to be rewarded for contributing to projects they love, while offering startups much more than capital.
Through the Stacker Ventures DAO, community members are rewarded for sourcing and accelerating portfolio projects while participating in the governance and growth of the ecosystem of funds. The code, roadmap, operation of Fund 1, and decisions regarding how to invest the Treasury are up to the community of STACK token holders.
Decentralized Autonomous Organizations (DAOs) are organizations governed by a combination of hard-coded logic and/or input from their members. Through careful structuring, DAOs allow for a community of contributors to focus their energy (or capital) on a shared mission, with implicitly agreed-upon rules enforced through code.
Smart contracts, enforced by the distributed computing power of blockchain participants, provide a strong and flexible foundation on which to build such DAOs.
While many DAOs have been tried, and while a few have persevered, distributed governance remains in its infancy. Due to the infinite possible missions, configurations, and parameters that might govern a DAO, there is no rule book by which to organize a new DAO.
Stacker Ventures is founded on the belief that nobody knows the perfect recipe (yet!) for building the most efficient decentralized venture fund, so we built a protocol with flexible parameters that allows every fund to be structured according to its needs and fund objectives. A fund’s success will validate the structural decisions that define it.
We are taking a similar approach with the organization of the Stacker Ventures DAO, acknowledging the need to initially move quickly and iterate. As such, governance of Stacker Ventures by STACK holders will be introduced in phases. The Stacker Ventures DAO will launch as an Aragon DAO with a DAO Council before looking at ways to optimize costs (L2?), explore the incorporation of reputation systems, and much more.
The world is built on hierarchies and early stage investing is not an exception. Portfolio managers must be experienced and diligent in order to produce consistent, superior investment decisions while supporting the growth of the projects they fund.
Where a simple one-token-one-vote system may work in some select cases, it does not allow for the nimble action and rigorous due diligence from which most early-stage investment funds benefit.
The Stacker Ventures protocol revolves around the understanding that trade-offs exist between decentralization and agility when it comes to early-stage investing. In order to seek a best-of-both-worlds, the Stacker Ventures fund parameters include modules to allow for management of a portion of each fund’s capital by a "Council", with built-in decentralized checks and balances. This Council could be a single Fund Manager, a group of investment specialists organized with a multi-sig, or a DAO. For Fund 1, the Stacker Ventures DAO will fill this position, approving due diligence findings and initiating investments through STACK token holder voting.
At the same time, the Stacker Ventures community helps source deals, incubates companies, and ultimately fosters the growth of invested capital.
We are at the forefront of a new age in both governance and open access to early stage investment opportunities. Stacker Ventures provides an adaptable and decentralized framework for early-stage investing.
Starting with the launch of the Stacker Ventures DAO and Fund 1, built on the Stacker Ventures protocol, Stacker Ventures will build towards a sustainable, community-governed ecosystem of funds of different types, focuses, and sizes.