Crypto investment firm Dao5 on Friday, May 1, 2025, announced the closing of a $222 million fund. Naturally, the fund will focus on the aforementioned investing in blockchain projects most likely to see institutional and government uptake. This strategic move comes as a welcome sign that capital is moving away from risky, speculative investments and more towards real-world applications of blockchain technology.
Founded in mid-2022 by Tekin Salimi, a former partner at Polychain Capital, Dao5 is making waves with its unique investment approach. They’ve already funded gamechanging projects such as Story Protocol, Bittensor, Berachain, and EigenLayer. The first fund they launched three years ago is fully deployed. It recently made history by returning the most of its commitments ever to limited partners.
To fuel its growth, Dao5 recently named George Lambeth as General Partner. Lambeth comes with a deep well of experience. They were a funder behind successful incubator-turned-launchpad Avalanche and modular blockchain Celestia.
"Crypto is entering its adolescence phase. The industry’s dependency on pure speculation as the driver of growth is no longer as effective as it once was," - Tekin Salimi
Salimi’s quote sheds light on the rapidly changing state of the crypto market. Dao5’s emphasis on integration into institutions and government reflects the larger industry trend towards practical applications and sustainable growth.
Dao5 intends to transition its first fund into a decentralized autonomous organization (DAO) later this year. This transition marks an important step in the company’s commitment to decentralization and community-driven governance across the blockchain ecosystem. If successful, the move would create a precedent for crypto investment firms that want to continue decentralized models.
Dao5's strategy of targeting institutional and government adoption with its blockchain projects aims to facilitate what Tekin Salimi describes as "the real integration of blockchain technology into global financial, governmental, and private sector systems." This makes Dao5 uniquely positioned to be at the cutting edge of connecting the crypto world with traditional institutions.
