Hydra Ventures DAO raises $10 million to launch a fund-of-funds DAO model

Hydra Ventures DAO has raised $10 million to create the next generation of investment DAOs, modeled on TradFi funds of funds. The organization was supported by 1kx, Collab+Currency, ConsenSys Mesh and Seed Club Ventures.

We are proud to announce the summoning of Hydra Ventures, the first dedicated investment DAO fund of funds.

With over $10m raised & ready to deploy, we’re excited to back the next generation of early-stage investment DAOs.https://t.co/Hlir9RAhCV

— Hydra Ventures (@HydraVentures_) March 29, 2023

Funding also came from CMT Digital, MetaCartel Ventures, KR1, Logos DAO, NEAR Foundation, Polygon Foundation, Hutt Capital, Nonagon, Tane Labs, Owl Ventures, Daedalus, Fire Eyes, Zypsy, Tokentus, 707v, Syndicate, Maverick Crypto and NxGen.

Hydra Ventures DAO aims to expand the investment-DAO sector and establish industry standards for governance, structuring and design.

The team is prepared to work across all aspects, from community coordination, capital deployment, organizational structure, incentive design to back-office.

According to DeepDAO, the investment-DAO segment comprises 89 structures.

Hydra Ventures DAO intends to invest in 30–40 venture DAOs with a target APY of 10%.

So far the organization has invested in an unnamed structure and plans to deploy the funds over three years with a cap of up to $500 000 per project.

Hydra Ventures DAO launched a venture investor under the pseudonym Pet3rpan, a partner at 1kx.

“This type of structure is an amazing instrument for indexing risk within a given ecosystem or market focus. The core thesis of Hydra Ventures DAO’s work is to focus on teams that are truly passionate about a given domain, which gives them an edge in investing, due diligence and access,” — Pet3rpan told The Block.

The Hydra Ventures team includes personnel from 1kx, Meta Cartel Ventures and Thing3.

In February 2023, Mantle Core and Mirana Ventures proposed to the BitDAO community to vote on creating an ecosystem investment fund in the amount of $200 million.

In August 2021, BitDAO issued a governance token and attracted 112 000 ETH (about $356 million at the time) in an auction.