VDP-7 Equity/Startup Deals

NOTE: This is a duplicate of an on chain proposal from prior to VitaDAO's using snapshot, and is present here for completeness on snapshot. No snapshot vote occurred.

Summary

This proposal is to decide if VitaDAO will do equity deals (i.e. fund startups) in addition to IP-NFT deals (i.e. acquire a project's IP). This would enable participation in opportunities at a more advanced stage that have already obtained validation of their commercial prospects independent of VitaDAO. In essence, they are safer bets.

Proposal Details

We are in advanced talks with several startups the Longevity WG team is excited about.

Rationale

Some of the most exciting areas in longevity, such as in cellular reprogramming, are already at the company stage. Therefore, focusing solely on academic projects will put VitaDAO behind the curve. Our main focus is on making a difference in the real-world, so we propose funding companies closer to making that vision possible.

Equity and startup deals provide a measure of valuation well understood in the marketplace that can gain VitaDAO exposure and help drive up the DAO’s credibility.

Furthermore, participating in equity deals alongside traditional investors will enable us to foster closer relationships with those who may eventually be purchasers of IP-NFTs. For the companies we fund, this will mean access to this growing network of VCs, incubators, operators, etc. Everyone benefits.

What’s unique about VitaDAO is our passionate, engaged community of longevists. This enables us to add value to the Fund’s portfolio companies in unique ways compared to traditional funding sources. Our community can help companies with not only the science, but also in growing awareness – creating value for both the companies and VitaDAO itself.

Risks

Even though IP-NFT deals will be at an earlier stage and riskier (since most academic projects don’t make it to the company stage), equity and startup deals are still subject to investment risk, including possible loss of the principal amount invested.

Specification

The amount proposed for VitaDAO to invest in a fund for equity deals is $1.5M.

While the industry standard fund fee structure is a 2% annual management fee and a 20% carried interest, this fund proposes a favorable fee structure of a 0.1% one-time management fee to cover setup costs and a 8% carried interest.

More information

For the full proposal with more details, see the discussion on Discourse here.