Startup Raises $1.5M to Make DAO Creation as Easy as Starting a Group Chat

The Solana-based Squads is looking to unleash the next wave of DAOs.

AccessTimeIconOct 28, 2021 at 3:01 p.m. UTC
Updated May 11, 2023 at 3:58 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Decentralized autonomous organizations (DAOs) have established themselves as a core part of Web 3, but could they have use cases outside of crypto? Some venture capital firms are betting they do.

Squads, an application that can be used to create DAOs on the Solana blockchain, has raised a $1.5 million seed round, the company announced Wednesday.

The round was led by Collab+Currency with participation from Reciprocal Ventures, Volt Capital, Chaotic Capital, 6thman Ventures, Republic Capital, 8186 Capital and Solana Capital.

The startup combines all the essential components of a DAO such as deployment, treasury and vault management, on-chain voting and chat into one portal, with an accessible interface that makes starting a DAO “as easy as starting a group chat,” Squads CEO Stepan Simkin said in a press release.

The company says it will use the funding for the beta release of its core product with a mainnet, or live, release to follow.

While DAOs have become a common structure for groups in crypto, Squads believes their utility can extend to companies outside of those industries including freelancers banding together for contract work, investment clubs pooling resources, gaming guilds coordinating accounts and even sports leagues managing equipment are all examples of organizations that could benefit from a DAO structure.

Stephen McKeon, partner at Collab+Currency, said Squads “sees a future where DAOs become a commonplace structure for organizing economic activity. We believe that rather than working for a corporation or nonprofit, many people will work for a protocol someday. So does the Squads team.”

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Eli Tan

Eli was a news reporter for CoinDesk. He holds ETH, SOL and AVAX.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.


Read more about