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How Syndicate DAOs and the Circle Account Are Revolutionizing Investing

How Syndicate DAOs and the Circle Account Are Revolutionizing Investing

Alex Behrens Alex Behrens August 19, 2021

The Circle Account is more than just a vehicle for USDC liquidity—venture capital firms and innovative online organizations are taking advantage of the convenience, speed, and transparency of Circle Account infrastructure to make funding easier and more equitable for some of the world’s most important causes.

Syndicate is building DAO (Decentralized Autonomous Organizations) infrastructure to revolutionize the way communities raise capital and work together to achieve big things. In a recent collaboration with Syndicate, the Circle Account provided an essential means of coordinating activity between multiple investors—and a reliable, streamlined platform for managing the collection and distribution of funds.

“Syndicate will bring DAOs to market that radically transform the investing world,” said Ian Lee, Co-Founder of Syndicate. “To do so, Syndicate is excited to collaborate and integrate with other industry-leading open financial platforms like the Circle Account to enable DAOs to accept and make wire transfers, serve institutional investors, and so much more in the months and years ahead.”

Using wire transfers and direct USDC deposits, IDEO CoLab Ventures led a $5 million special purpose vehicle (SPV) with 20 investors to participate in Forte's recent $185 million Series A funding round that valued the blockchain gaming infrastructure startup at more than $1 billion. The SPV utilized Syndicate’s infrastructure in combination with the Circle Account to help execute the investment.

“The Circle Account provided us with an easy and secure way to accept funds from institutional investors in a crypto-native way,” said Joe Gerber, Managing Partner of IDEO CoLab Ventures. “We were able to demonstrate that the combination of the Circle Account with Syndicate’s infrastructure dramatically reduces the time, cost, and complexity of SPV investments.”

With funds conveniently collected and managed using the Circle Account, Syndicate’s infrastructure recorded both on and off-chain transactions—helping automate deposits, management of the investor cap table, and future distributions to investors.

“DAO proliferation is probably one of the most profound micro-economic transformations happening since the industrial revolution and the broad-based birth of joint-stock corporations, which formed the seeds of the banking and capital markets system we live in today,” said Jeremy Allaire, Co-founder and CEO of Circle. 

“I'm hopeful that as Circle continues to iterate on our vision of a digital currency account for businesses, we can continue to create more DAO-friendly treasury infrastructure.”

The impact of DAOs and the causes they support are only beginning to be felt, but their potential is enormous. Infrastructure like Syndicate combined with open financial platforms like the Circle Account introduce frameworks for making investing 1000x cheaper and easier than ever, allowing new communities to emerge to invest in change in the world. 

Together, Circle and Syndicate hope to bring greater financial equality and inclusion to the world through open public networks to raise prosperity for all.

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