Scenario 2: Startup Investments

Scenario 2: Investment in Startups Affected by SVB Collapse (Venture DAO)

Should the DAO fail to achieve to acquire a minority stake in SVB as proposed in Scenario #1, due to changing market dynamics, lack of access to the investment process, or the collective view that timing is of the essence to support the ecosystem, the funds raised will be used towards direct capital investment into SVB collapse-affected startups.

In Scenario #2, it is mission critical that the DAO is positioned to deploy capital with both speed and precision. In order to achieve this goal, the DAO would propose and approve, based on voting, the investment criteria, which may include:

• Standard due diligence factors such as team, traction, TAM, technology and terms

• Minimum threshold of capital raised by institutional VCs

• Proof of deposit with SVB, providing a base to assess sizing of potential investment

• Runway of at least 18 months including readily available cash on hand + DAO investment

• Plan of actions taken or to be taken in the current context, assessing team approach to survival

The terms would be determined by the DAO but would likely be in the form of a SAFE with a preferred discount to the next round with an agreed valuation cap + SAFT (if applicable).