Defi . 2 Aug 2022

Debt DAO Raises $3.5 Million Seed Round Led By DragonFly Capital.

by Shreya Bhardwaj
Debt DAO Raises $3.5 Million Seed Round Led By DragonFly Capital.
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Debt DAO, a permissionless marketplace for crypto-native credit, has raised $3.5 million in a seed round led by Dragonfly Capital. 

The financing round is led by Dragonfly Capital, a US-based investment firm. The round garnered participation from leading VCs, including  Numeus, Fasanara Capital, and GSR.

Apart from VCs, six angel investors participated in the funding round, including ex-Coinbase CTO Balaji Srinivasan, TrueFi’s Ryan Rodenbaugh and Chainlink Labs’ David Post.

Debt DAO gives "crypto native enterprises," such as DAOs and protocols, revenue-based funding. This entire process is controlled via "Spigot", a smart contract that secures borrowers' on-chain cash flows to repay lenders automatically.

According to Haseeb Qureshi, the general partner at Dragonfly Capital, debt is now one of the most significant components missing from the decentralised finance markets. He considers that one of the best companies in this ecosystem to address that issue is Debt DAO.

Right now, debt is one of the big missing pieces from the Defi universes, and Debt DAO is one of the strongest teams in this space tackling that problem, said Haseeb Qureshi, Dragonfly Capital's general partner

In May 2022, Dragonfly Capital closed its third venture fund, valued at $650 million, with participation from Tiger Global, KKR, Sequoia China, and Invesco.