Former Polychain Capital partner launches $125 million crypto fund.

A former general partner of Polychain Capital, Tekin Salimi, has launched the investment fund dao5 with $125 million in assets. The vehicle is aimed at supporting early-stage projects in the crypto industry.

Very proud to announce the launch of dao5 (@daofive); an experimental seed stage crypto fund that will convert into a founder-owned DAO. https://t.co/blYAWa5yaz

— tekin salimi (@tekinsalimi) March 23, 2022

The fund plans to invest in areas such as privacy technologies, DeFi, NFTs, decentralised autonomous organisations (DAOs) and first‑layer blockchain infrastructure. The average funding size is expected to range from $500,000 to $2 million.

Salimi’s plan is to convert dao5 into a DAO by 2025. This would mean that recipients of investments would become holders of governance tokens in the future organisation. The move is intended to provide mutual financial support among founders of portfolio companies and incentives for collaborative work.

“Dao5’s goal is to explore a new model for launching a DAO, focusing first on attracting talent and capital through venture investing, and second on increasing treasury value by leveraging the community’s collective talent,” Salimi said.

“We have about three years to understand and get everything right,” Salimi said.

As noted, in 2021 venture investments into the crypto industry exceeded $30 billion. ForkLog explained in a piece the main drivers of growth.