FinTech news in Goldfinch category

While an investment DAO typically can only have up to 100 members in order to stay compliant with SEC rules, Orange DAO has found a way to bring over over 1,000 Y Combinator alumni together to back web3 startups through an associated venture fund. The DAO itself is structured as a Cayman Islands foundation company, Huh said, while the fund is run as a separate legal entity by Huh and a few other general partners. That way, the fund doesn’t have anywhere near the SEC’s cap of 100 investors for a venture group, though Huh and the other GPs leverage the DAO’s hundreds of members to source investment ideas and conduct diligence. Huh said members can capture upside by becoming members of the DAO and voting on what it does with its treasury without needing to be accredited investors in a venture capital firm themselves.

The group is a bit opaque on how performance from the fund will translate to returns for DAO members, though Orange Fund’s GPs will be contributing their carry in the fund to the Orange DAO’s internal treasury.

The Bay Area startup wants to take a more blended solution to crypto lending with its protocol, building up capital pools and allowing fintech organizations outside the U.S. to make their case to lenders operating on the protocol and get access to funds while showing non-crypto collateral. Goldfinch is a crypto startup building a decentralized lending protocol that allows organizations to receive crypto loans without owning massive amounts of crypto already.