June 17th, 2022 - The Algorand Foundation today welcomes Cooperativ Labs Inc, and their project partner, REI DAO, to the Algorand ecosystem as our latest grant recipient.
Cooperativ Labs is building tooling that lets organizations quickly create and deploy compliant private token exchanges. Using Cooperativ, both DAOs and traditional (centralized) businesses - such as startups and investment syndicators - will be able to offer more liquidity and a more streamlined investment experience to their investors.
Cooperativ Labs CEO, Jacob Chase-Lubitz, explained, "by switching from a 1-to-1 investment contract model to an exchange-based model, we can significantly reduce costs and improve liquidity, all within the existing regulatory framework."
Cooperativ has partnered with REI DAO, a collaborative real estate investing DAO for experienced, trustworthy operators who work together to identify, acquire and manage commercial real estate. Together, Cooperativ Labs and REI DAO will create a powerful community experience for real estate syndicators and their investors. The collaboration will allow participants to have access to real estate investments on-chain while still retaining the regulatory safety nets of the existing system.
REI DAO organizer, Derek Scruggs, highlighted the significance of the opportunity: "real estate investment/syndication is a multi-trillion-dollar industry with a fairly standard set of procedures that are nonetheless woefully behind the current state of the art for online investing. The administrative costs of registering a syndication, vetting subscribers, and managing investments (distributions, disclosures etc.) are significant, limiting the scale of these enterprises and reducing accessibility for smaller operators. And because investments are illiquid for years at a time, only a small percentage of investors can afford the risk of locking up capital for extended periods. This partnership will spur a quantum leap forward."
"We’re excited to welcome Cooperativ to the Algorand ecosystem. The Cooperativ platform offers an innovative solution using blockchain technology to the traditional pain points of real estate syndications, removing the tedious and manual efforts involved in creating, investing and managing real estate syndications. Legal agreements will be linked to a smart contract allowing participants on the exchange to easily trade the syndication’s tokens, which have real value, instantly, without the legal paperwork that usually accompanies such sales. Compliance is made easier as investors only need to be vetted once with approved investors then able participate in any of that syndicator's future offerings, quickly, without additional paperwork". - Daniel Oon, Head of DeFi, Algorand Foundation
Syndicators and investors interested in joining Cooperativ/REIDAO’s first syndications can learn more and apply here.