Key Takeaways
- • dao5 closes $222 million second fund, bringing total assets under management to approximately $550 million since its 2022 inception with a $125 million first fund that has been fully deployed.
- • Fund targets blockchain infrastructure and institutional adoption, with completed investments in layer-1 blockchain Berachain and decentralized AI project Bittensor demonstrating the firm's early-stage thesis.
- • Founder Tekin Salimi leverages unconventional crypto venture pedigree, transitioning from corporate law and Polychain Capital experience to build dao5's competitive edge through deep founder relationships and advisory-level engagement beyond traditional venture capital.
- • Crypto venture capital remains resilient amid macro headwinds, with dao5's fundraising success occurring despite IPO market evaporation and broader investor caution, signaling sustained institutional appetite for blockchain-focused opportunities.
- • dao5 differentiates through embedded founder support model, with Salimi positioning the firm's value proposition around multi-faceted engagement ranging from capital provision to strategic advisory to early-stage company support.
Summary
Blockchain-focused venture firm dao5 has successfully closed its second fund at $222 million in committed capital, according to Fortune's exclusive reporting. The raise brings the firm's total assets under management to approximately $550 million since its founding in 2022. The first fund, closed at $125 million, has been fully deployed across crypto startups, establishing dao5 as an active and committed participant in the venture-backed blockchain ecosystem.
Founded by Tekin Salimi, a former corporate lawyer and alumnus of crypto venture giant Polychain Capital, dao5 has already deployed capital into marquee infrastructure projects. The firm's portfolio includes Berachain, a layer-1 blockchain protocol, and Bittensor, a decentralized artificial intelligence project. These investments reflect dao5's thesis around early-stage blockchain infrastructure and institutional-grade adoption narratives within the broader crypto ecosystem.
Salimi's path into crypto venture capital diverges from traditional institutional finance trajectories. He entered the blockchain space during the 2017 initial coin offering boom while practicing corporate law, describing himself as "one of the few suits" attending blockchain meetups and actively sourcing founder relationships. Rather than remaining in traditional legal practice, Salimi transitioned to hands-on involvement, advising projects on capital raising and corporate restructuring while accepting compensation in Bitcoin and pre-launch tokens. He subsequently joined Polychain Capital in late 2017, where he gained direct exposure to venture-stage crypto investing before establishing dao5.
In commentary to Fortune, Salimi emphasized dao5's differentiated value proposition in the competitive crypto venture landscape. He characterized the venture capital role as multifaceted, requiring versatility across investor, strategic advisor, and founder support functions. "Sometimes the job [of VC] can range from everything to investor to close friend and then therapist of these young founders," Salimi stated, underscoring the firm's emphasis on embedded founder relationships and continuous advisory engagement beyond capital deployment.
The dao5 fundraising success represents sustained institutional confidence in crypto venture opportunities, occurring amid significant market headwinds including macro investor caution and the evaporation of traditional IPO exit pathways. The $222 million close signals that specialized crypto venture capital—particularly funds with differentiated theses around infrastructure, institutional adoption, and founder support—continues to attract major commitments from sophisticated investors.
Founded by Tekin Salimi, a former corporate lawyer and alumnus of crypto venture giant Polychain Capital, dao5 has already deployed capital into marquee infrastructure projects. The firm's portfolio includes Berachain, a layer-1 blockchain protocol, and Bittensor, a decentralized artificial intelligence project. These investments reflect dao5's thesis around early-stage blockchain infrastructure and institutional-grade adoption narratives within the broader crypto ecosystem.
Salimi's path into crypto venture capital diverges from traditional institutional finance trajectories. He entered the blockchain space during the 2017 initial coin offering boom while practicing corporate law, describing himself as "one of the few suits" attending blockchain meetups and actively sourcing founder relationships. Rather than remaining in traditional legal practice, Salimi transitioned to hands-on involvement, advising projects on capital raising and corporate restructuring while accepting compensation in Bitcoin and pre-launch tokens. He subsequently joined Polychain Capital in late 2017, where he gained direct exposure to venture-stage crypto investing before establishing dao5.
In commentary to Fortune, Salimi emphasized dao5's differentiated value proposition in the competitive crypto venture landscape. He characterized the venture capital role as multifaceted, requiring versatility across investor, strategic advisor, and founder support functions. "Sometimes the job [of VC] can range from everything to investor to close friend and then therapist of these young founders," Salimi stated, underscoring the firm's emphasis on embedded founder relationships and continuous advisory engagement beyond capital deployment.
The dao5 fundraising success represents sustained institutional confidence in crypto venture opportunities, occurring amid significant market headwinds including macro investor caution and the evaporation of traditional IPO exit pathways. The $222 million close signals that specialized crypto venture capital—particularly funds with differentiated theses around infrastructure, institutional adoption, and founder support—continues to attract major commitments from sophisticated investors.
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