The decentralized autonomous organization — or DAO — founded by Y Combinator alumni has reportedly raised $80 million to invest in early-stage blockchain startups.
Orange DAO received most of that sum from blockchain technology companies Algorand Foundation Ltd. and Near Inc., according to Tech Crunch. The rest came from institutional investors and members of the DAO; the latter will become limited partners of Orange's new fund, according to Tech Crunch's report.
Algorand and Near stand to potentially benefit if any of the blockchain and cryptocurrency entrepreneurs Orange backs have a runaway success.
"For them, working with us and getting exposure in front of our entrepreneurs is really important," Orange co-leader Ben Huh told TechCrunch.
Huh was not immediately available for comment when contacted by the Business Journal.
Thus far, Orange has invested in 90 startups, Tech Crunch reported. In addition to backing blockchain companies, the organization plans to use its funds to expand a fellowship program it operates that pays Y Combinator alums to work on blockchain-related projects, according to the report.
A DAO is a blockchain-based structure that automatically enforces contracts among its members. Each DAO member owns a stake in the entity and can vote on each decision the DAO makes. By definition, a DAO is decentralized and isn't typically headquartered in a single physical location.
Although it's opened its venture fund to other investors, Orange's organization, which launched last fall, is open only to founders and staff members of Mountain View-based Y Combinator. The organization itself now has roughly 1,300 members, according to its Twitter profile.
Orange aims to help cryptocurrency-focused startups get accepted into YC's accelerator program, provide them with funding before and after their participation in YC and to help them grow and mature, according to its charter.
