Introducing Web3 Investment Clubs

0x66B3
January 25th, 2022

We're excited to introduce Web3 Investment Clubs, Syndicate’s first mainstream crypto-native social investing tool built on Syndicate Protocol. It launched today in public beta and transforms any Ethereum wallet into a powerful investing DAO in seconds for just the cost of gas. Start one with your web3 community today here.

Friends, angel investors, and web3 communities can now create and run an investment club as a DAO as easily as starting a group chat. Syndicate’s Web3 Investment Clubs can invest in tokens and NFTs—as well as off-chain startups and assets. They can attach legal entities, open bank accounts, and issue K-1s. And they’re powered by ERC-20 infrastructure, making them out-of-the-box composable with any DAO and web3 tool like Gnosis, Snapshot, and more.

For far too long, the powerful tools to invest with others have been excluded to those who can afford expensive SaaS and service providers. But now, virtually anyone can launch and run an investment club as a DAO with Syndicate—in 100x less the time and cost of an investing vehicle built on today’s TradFi and web2 platforms.

This marks just the first of many steps in our mission to radically transform investing through accessible, effortless, and social web3 technologies. Web3 communities like South Park Commons-Script Founder Fellowship, Global Coin Research (GCR), Chapter One, DAO Jones, Awesome People DAO (Julia Lipton), Vector DAO, The Council DAO, Eve, Morii Music DAO, Chad Capital, We3 DAO, SLCF (SuperLayer-Chainforest), Women in VC DAO, Forefront and many more have or are in the process of launching investment clubs on Syndicate.

And this is just the beginning.

Traditional Investment Clubs

Investment clubs have been around for thousands of years, but the first official investment club in recorded history was started in Texas in 1898 during the Wild West.

What the first investment club probably looked like
What the first investment club probably looked like

Investment clubs are groups of people who pool their capital to invest together—to share ideas, learn together, increase buying power, share risk, and reduce transaction costs. They invest in stocks, bonds, real estate, art, and collectibles—and these days, startups, tokens, and NFTs.

Since investment clubs are member-driven, virtually any community can create one—and they’re generally not regulated by the SEC provided that they follow certain guidelines. For example, they can have up to 99 members, are invite-only, do not charge carry, and require everyone to participate in investment decisions—among a few other requirements that we've outlined in our Gitbook here.

Historically, investment club members meet in person to share, discuss, and make investments together. But a lot has changed since 1898—people around the world now organize and collaborate on the internet. As such, running an investment club should be more internet-native—but it’s not today, with many challenges including:

  • Slow, difficult, and expensive to create and run an investment club
  • Hard to maintain compliance with laws and regulations
  • No modern, internet-native tool to invest together in internet-native assets

But now with Syndicate, groups can easily create and run an investment club natively on the internet—built with the full power and composability of web3.

Web3 Investment Clubs

Syndicate’s Web3 Investment Clubs enable friends, angels, and web3 communities to launch and run internet-native investment clubs as DAOs.

Web3 Investment Clubs on Syndicate
Web3 Investment Clubs on Syndicate

Here are just some of the many benefits of running an investment club on Syndicate:

  • Web3-native: Runs natively on the internet via Syndicate Protocol on Ethereum (and other chains soon).
  • Transform any wallet into a DAO: Use your favorite Ethereum wallet like MetaMask, Ledger, Gnosis, and more to create and run an investment club.
  • 100x faster, easier, cheaper: Create an on-chain investment club in seconds for just the cost of gas.
  • Invest in crypto and real-world assets: Invest in tokens and NFTs—as well as startups and real-world assets (via a legal entity).
  • On-chain portfolio and cap table management: Real-time dashboard to manage investments (e.g., tokens, collectibles, startups) and club members.
  • Composability: Each club’s ERC-20 infrastructure enables full composability with future Syndicate tools and the entire ecosystem of DAO and web3 tools.
  • Legal infrastructure: Get DAO legal entities, DAO legal docs, EINs, bank accounts, K-1 tax filings, and more from our friends at doola
  • And so much more to come…

Now let’s review in more detail some of the most exciting features of Syndicate’s Web3 Investment Clubs.

1/ Powerful Investing DAOs in a Few Clicks

In seconds, you can transform any wallet (e.g., MetaMask, Ledger, Gnosis) into a powerful investing DAO for just the cost of gas. Syndicate gives wallets new web3 investing superpowers: on-chain deposit management, cap tables (i.e., mirrortables), governance tokens (i.e., mirrorshares), investment portfolio dashboards, and more.

DAO dashboard for investment clubs on Syndicate
DAO dashboard for investment clubs on Syndicate

We’re also excited to share that we’ve teamed with our friends at doola to enable investing DAOs on Syndicate to get legal entities, open fiat bank accounts, submit state compliance filings, and issue K-1s tax forms easily and affordably. This is a game changer—and it’s just the beginning of deeper integrations and capabilities that we’ll be bringing to DAOs on Syndicate together.

Forget manually tracking DAO deposits and cap tables via surveys and spreadsheets. Syndicate automatically generates a deposit link to send to members—and as people contribute capital, your web3 investment club automatically updates its on-chain cap table (i.e., “mirrortable”) and issues each member a proportionate number of ERC-20 “mirrorshares” (non-transferrable by default) as envisioned in this recent post by Balaji.

Investment clubs on Syndicate have ERC-20 powered mirrortables and mirrorshares
Investment clubs on Syndicate have ERC-20 powered mirrortables and mirrorshares

Each web3 investment club’s mirrortable and mirrorshares are powered by ERC-20 infrastructure, making them fully composable with any DAO or web3 tool like Snapshot, Gnosis, Coordinape, and Guild for on-chain governance, automating distributions and airdrops, recognizing contributors, token gating, and more.

The only thing worse than manually tracking DAO deposits and cap tables in a spreadsheet are DAO legal docs—and manually creating, customizing, sending, and collecting signed copies from members to join a DAO.

Syndicate makes this easy. You can generate, send, and collect signed copies all via Syndicate’s web app. Also, this is all done in a web3-native way. It doesn’t use centralized servers—so nothing (e.g., documents, PII, data, etc.) is stored on a centralized server anywhere, providing users with maximum privacy, security, and control. ​​Latham & Watkins, a leading global law firm, advised us on the creation of these standardized legal documents for Syndicate’s Web3 Investment Clubs.

We’re creating web3-native tools that do the heavy lifting so you don’t have to.

Syndicate’s DAO legal doc generation and web3 signing tool
Syndicate’s DAO legal doc generation and web3 signing tool

4/ On-Chain, Real-Time Investments Dashboard

Never manually track investments, trades, and transactions on spreadsheets again. Web3 Investment Clubs on Syndicate have real-time dashboards that visualize on-chain investments into tokens and NFTs on Ethereum (and other chains soon).

These investment dashboards can be viewed anytime by any member of the club.

Syndicate’s DAO dashboard displays token and NFT investments in real-time
Syndicate’s DAO dashboard displays token and NFT investments in real-time

5/ Off-Chain Investment Memos & Metadata

With Syndicate, you can also record investments into off-chain assets (e.g., startup equity, SAFEs, convertible notes) and attach off-chain memos, metadata, and links that display on your investment club’s dashboard. This makes Syndicate a powerful tool not just for on-chain token and NFT investing, but also off-chain angel and venture capital investing into pre-public companies and startups.

This tool was designed in collaboration with our friends at IDEO CoLab Ventures, Electric Capital, Delphi Digital, Variant, CoinFund, and many other web3 investors—this is just one of many web3-native tools that we’re building that enable DAOs to bridge to the off-chain world.

Off-chain investment memos can be added and displayed on Syndicate’s DAO dashboard
Off-chain investment memos can be added and displayed on Syndicate’s DAO dashboard

The Revolution Has Started

In the weeks and months ahead, we'll be adding an array of powerful new features, capabilities, and integrations to our Web3 Investment Clubs in the areas of community building and management, governance and voting, reporting and tax, social networking, incentives and economic collaboration, and so much more. This is our first product and initial set of features—we are just getting started and have so much more already in development.

The future of investing is decentralized, democratized, and community-driven. This revolution will come from web3—and it starts today with investment clubs on Syndicate.

Join us and the revolution. wagmi.

Start a Web3 Investment Club
Read our Gitbook on Web3 Investment Clubs
Follow us on Twitter
Join our Discord
See open positions at Syndicate
See our requests for strategic partners

++

Web3 Investment Clubs Launching on Syndicate

South Park Commons-Script Founder Fellowship
Vector DAO
Global Coin Research (GCR)
Chapter One
DAO Jones
Awesome People DAO (Julia Lipton)
Eve
Morii Music DAO
The Council DAO
We3 DAO
Chad Capital
SLCF (SuperLayer-Chainforest)
Women in VC DAO
Forefront

​​Syndicate cannot provide any legal or tax advice, and the contents herein should not be construed as such. Syndicate makes no claims as to the accuracy of the information in this announcement or as to the legality of any activity on the Syndicate platform. Before creating and/or operating a Syndicate, we encourage you to seek advice from an attorney and tax professional licensed in the relevant jurisdiction(s). Failure to comply with the guidelines stipulated for investment clubs or failure to seek legal counsel could lead to regulatory investigations and/or actions.

Arweave TX
sGkXaGGb5DHgcCwM4siBW1gDESZ3xHxgfgkW-_3FwcE
Ethereum Address
0x66B340673fcE10bd3bFbbe59997Ae188a16b6710
Content Digest
4p6a0nKpBYMSxoAfN6KpjcUwJSD2t68Dq7zgoliB4pk