A beginner’s guide to DAOs and Web3 fundraising
Forget pitch decks and endless investor calls—fundraising in the Web3 era is becoming faster, community-driven, and borderless
If you’re a founder, you’ve probably faced this: sending out your pitch deck to 50+ investors, waiting weeks for replies, and hearing a lot of “too early for us.”
But imagine this instead: hundreds (or even thousands) of people around the world pool in small amounts of money because they believe in your idea. They’re not just investors—they’re your first users, supporters, and cheerleaders.
That’s the promise of DAOs and Web3-backed funding. It sounds like fancy tech, but at its core, it’s about founders raising money directly from a community instead of just a handful of investors.
Let’s break it down, step by step.
What is a DAO in simple words?
DAO stands for Decentralized Autonomous Organization. But don’t let that scare you. Think of it this way:
👉 It’s like a digital version of an investment club.
Instead of 10 friends pooling money in a bank account, a DAO uses blockchain (a kind of digital ledger) to collect and track funds.
Instead of one boss deciding where the money goes, members vote together on which startup to back.
For founders, it means you don’t have to convince just one VC partner. You can get funding from a whole community that aligns with your vision.
How does Web3-backed funding work?
Web3 simply means “the next internet”—where people own things directly (through tokens) instead of everything being controlled by big companies.
For fundraising, this opens up new methods like:
Community Pools: You raise small amounts of money from many people globally.
Tokens Instead of Shares: Instead of giving out equity (shares), you give supporters tokens, which may provide future perks, discounts, or revenue-sharing.
Faster Decisions: DAOs vote online, so you don’t get stuck in months of back-and-forth calls.
Example: ConstitutionDAO raised $47 million in a week from people all over the world who wanted to buy an old copy of the US Constitution. The project didn’t succeed, but it proved that communities can raise huge sums quickly.
🚀Founders, ready to raise funds?
The Pitch by VCCircle is India’s premier multi-city fundraising event where startups get exclusive, closed-room access to top VC investors.
✅ Already hosted in Mumbai, Bangalore & Ahmedabad
📍 Next stop: Goa on 7th Nov
🎁 Bonus: Claim $200K+ in tech credits
👉 Apply now and take your startup’s fundraising journey from 0 to 1.
Why should Indian founders care?
Here’s why this matters for you if you’re building in India:
Global Access: Instead of relying only on local angels/VCs, you can tap into worldwide communities.
Early Users Become Investors: Your backers aren’t passive—they’ll likely be your first customers and promoters.
India’s Web3 Talent: With projects like Polygon coming from India, there’s already momentum.
For founders who often feel “stuck” in long fundraising cycles, this is a refreshing alternative.
Risks and Realities You Shouldn’t Ignore
As exciting as this sounds, founders should walk in with eyes open:
Regulatory Hurdles: India doesn’t have clear crypto fundraising laws yet.
Volatility: Token prices can fluctuate wildly.
Execution Complexity: Setting up a DAO requires legal structuring, community-building, and tech expertise.
This isn’t a “shortcut” to funding—it’s a new path that comes with its own set of rules.
Final Key Takeaway
Fundraising is no longer just about coffee meetings with VCs. DAOs and Web3-backed models let founders raise capital from communities instead of only investors.
It’s still early days, but the direction is clear: the future of funding will be more open, community-driven, and global.
For now, the smart move for early-stage founders is to learn, experiment small, and stay prepared. When this wave goes mainstream, you’ll be ready.
Because the real question isn’t “What’s a DAO?”—it’s “Could your startup be the next one funded by a global community?”
🚀Founders, ready to raise funds?
The Pitch by VCCircle is India’s premier multi-city fundraising event where startups get exclusive, closed-room access to top VC investors.
✅ Already hosted in Mumbai, Bangalore & Ahmedabad
📍 Next stop: Goa on 7th Nov
🎁 Bonus: Claim $200K+ in tech credits
👉 Apply now and take your startup’s fundraising journey from 0 to 1.