SCP03 -- Seed Club Ventures Proposal

Seed Club Ventures

Seed Club is launching Seed Club Ventures (SCV), a $20M+ early-stage fund structured as an investment club investing in companies & DAOs building the infrastructure and technology for DAOs and social token creators. SCV will pledge 10% of its returns (50% of GP Carry) to Seed Club’s treasury.

SCV will leverage Seed Club’s leading position in the ecosystem to support and add value to projects in its portfolio, thereby accelerating the growth of this emerging space, and delivering on Seed Club’s strategy and objectives. SCV has already made investments in projects including Agora Space/Guild.xyz, Metalink, DiamondDAO, Coordinape, CabinDAO, Monument, MetaStreet, and Myco.

SCV is oversubscribed and currently has capital commitments of over $25M. Institutional investors include Multicoin Capital, Delphi Digital, Distributed Global, Collab Currency, Dragonfly Capital, IDEO CoLab Ventures, ID Theory, Lemniscap, Numeus.xyz, Hypersphere Digital, and Mechanism Capital. Individual investors include Bored Elon, Gordon Gould, Tyler Reynolds, Robert Zawiasa (Guild.xyz Space), Ben Lakoff, Darren Lau, Daryl Lau, Jaynti Kanani, and Dan Elitzer.

SCV will operate as a Venture DAO. Membership will be limited and curated to ensure the highest quality deal flow, deal due diligence, and support of portfolio projects.

Organization SCV is a Cayman Islands investment club/fund. SCV will operate a 2/20% fee structure. The 2% operational fee will be allocated towards compensation for Core Contributors, structuring and legal fees, and maintenance.

Incentive Alignment

• SCV and Seed Club DAO will align incentives through the following mechanism:
• SCV will pledge 10% of its returns (50% of GP Carry) to Seed Club DAO’s treasury
• Full-time SCV Core Contributors will be compensated with USDC and a % of GP Carry
• Full-time SCV Core Contributors will receive a $CLUB token bonus based on SCV returns

This mechanism will ensure that Seed Club DAO’s existing Investors, SCV’s full-time Core Contributors, and SCV Members will all participate in the upside of both Seed Club and SCV and therefore be incentivised to promote the growth of both organisations.

SCV Contributors SCV will be led by a Core Contributor Team: Instigator — responsible for fundraising, investor relations, managing strategy, community, and portfolio NiMA Asgari previously set up the first Community Fund of Funds at NEAR ($30M AUM, $100K-2M ticket size) and is an angel investor in over 10 Web3 community and infrastructure projects Facilitator — responsible for deal sourcing, investing, and community operations Anthony Avedissian has over 5 years’ investment banking and consulting experience at firms including Amber Capital ($2B AUM), Oxford Science Innovation ($1B AUM), Outsized Ventures ($100M AUM), Neo Kuma Ventures ($20M AUM)

SCV Core Contributor Bonus Retroactive Token Distribution

• Instigator: 15K $CLUB
• Facilitator: 7.5K $CLUB

$CLUB Bonus

• Instigator: 150K $CLUB
• Facilitator: 75K of $CLUB

20% of Core Contributor $CLUB bonus will be distributed to Core Contributors on a monthly basis and vested over 4 years with no cliff. 50% of the remainder will be unlocked if SCV returns profits to Seed Club DAO above a 2x hurdle rate on its funds under management and the other 50% if the ROI is above 4x.

Liquidity & Distribution SCV’s assets and profits will be distributed either:

• In 10 years, at fund closure
• Sooner than 10 years, based on a unanimous vote to liquidate all assets and wind SCV down
• Ad-hoc, based on a supermajority vote supported by SCV’s preferred shareholders (Jess Sloss and NiMA Ashgari)

A few notes on logistics, fees, admin, token comp, etc:

• All USDC/stablecoin salaries, fees, etc are covered by the management/operational fees of the fund and no further funding beyond the $CLUB bonus is needed from the DAO
• $CLUB bonus requested in this proposal will be only distributed to the full time core team of the fund

The expenses will entirely be paid from SCV’s operational fees.

Vote Yes — Agree to accept SCV Fund launch No — Refusal to accept SCV Fund launch