It must be fundraising season in the decentralized finance industry. Syndicate, another protocol, is raking in big bucks from venture capital firms.
The community-driven investing platform Syndicate is the most recent DeFi protocol to capture the attention of major investors. Syndicate announced on August 31 that it had raised $20 million in a Series A round led by Andreessen Horowitz (a16z).
A number of regular DeFi investors also participated. IDEO CoLab Ventures, Electric Capital, CoinFund, Scalar Capital, Coinbase Ventures, Aave, Protocol Labs, Delphi INFINFT, and True Ventures were among those involved.
More than 150 well-known founders, operators, creators, and individuals pledged their support for the venture. Alexis Ohanian, Reddit’s co-founder, Biz Stone, Twitter’s co-founder, actor Ashton Kutcher, and Calvin Cordozar Broadus Jr., aka Snoop Dogg, were among those honored.
Syndicate wants to “democratize investing” by allowing communities to raise and invest capital in a way that has previously only been available to large financial institutions.
Democratizing the investment process
The protocol’s goal is to make investing accessible to everyone by combining a social network with an investing portal. Syndicate was established in 2021 with the “ultimate goal of transforming how the world creates and distributes value.”
The funds will be used to accelerate the development of a DAO, according to the statement. This will be done in order to integrate with Web3 projects and fintech startups.
Several have already gone live on Syndicate. These include Komorebi, a platform that invests in female and non-binary founders, Audacity, which invests in Black and African founders, Fiat Lux, which funds scientific research, and Delphi INFINFT, a non-fungible token investment platform.
Syndicate stated that it is currently collaborating with dozens of new communities, including CityDAO, which democratizes land access, in order to launch a private beta in the coming months.
The software has undergone two ConsenSys security reviews, two Trail of Bits security audits, and formal verification from Certora, according to the official website. There’s also a million-dollar bug bounty on the table.
VCs clamoring for DeFi
Syndicate is the most recent in a long line of DeFi and investment platforms to raise capital in recent months.
OffChain Labs, for example, just launched Arbitrum One, its long-awaited Ethereum Layer 2 platform, this week after raising $120 million.
This week, Parallel Finance announced a $22 million funding round. It aims to increase the amount of DeFi in the Polkadot ecosystem. Furthermore, Hats, a decentralized cybersecurity incentive network, announced a $3.5 million seed funding round yesterday.