The LAO

The LAO is a pioneering decentralized autonomous organization (DAO) that operates as a for-profit venture fund, uniquely structured to comply with U.S. law. Launched in April 2020 by OpenLaw, a ConsenSys-backed legal technology company, The LAO was one of the first legally compliant DAOs designed for investment purposes. It functions as a Delaware-based limited liability company (LLC), allowing members to pool capital and collectively invest in promising blockchain and Web3 projects. This innovative structure enables a decentralized approach to venture capital, where members vote on investment proposals and manage the fund's operations transparently on-chain.

The firm primarily targets early-stage companies and protocols within the cryptocurrency, blockchain, and application software sectors, with a particular emphasis on decentralized finance (DeFi), non-fungible tokens (NFTs), and broader Web3 infrastructure. Its investment thesis revolves around supporting foundational technologies and applications that drive the adoption and evolution of the decentralized web. Through its unique governance model, The LAO empowers its members, who contribute capital and expertise, to directly influence investment decisions, fostering a community-driven approach to venture funding.

The LAO typically deploys initial checks ranging from $50,000 to $1,000,000, aiming to support nascent projects with significant growth potential. As of a 2022 update, The LAO had deployed over $30 million across a diverse portfolio of blockchain ventures, demonstrating its active participation in the ecosystem. Its portfolio includes notable names such as Aavegotchi, SuperRare, and Zapper, reflecting its commitment to various facets of the decentralized economy. The fund's transparent, on-chain operations and its legal wrapper provide a unique blend of decentralized governance and traditional legal compliance, setting a precedent for future DAO-based investment vehicles.

This structure not only offers a new model for capital deployment in the crypto space but also provides a framework for collective ownership and decision-making that aligns incentives among its members. The LAO continues to be an influential player in the Web3 investment landscape, leveraging its community-driven model to identify and foster innovation in the rapidly evolving blockchain industry.