Ah yes - I do think it will be solved with a DAO simply because of the community ethos.
People who have the right attitude to support early stage Ethereum projects either don’t have the funds to write larger checks or just don’t want to engage in the traditional way that VCs engage.
I think that a VC DAO solves the problem by allowing many smaller investors to contribute and also allowing whales to contribute in the Ethereum way.
DAOs also have the potential to solve the application layer value capture problem, which also makes it easier to invest in early stage products.
I haven’t done all the reading linked in this thread, so apologies if this has been proposed, but a DAO funding mechanism could be different from a web 2.0 VC fund in several ways. Especially if the goal is to fund dapps, then revenue streaming share agreements could build funnels from dapp revenue back to the funding DAO. This would be different from a VC-based ownership (shares or tokens) model.
Regulatory on this would be very different as it would be a kind of business partnership with a decentralized entity rather than a straight investment.