Legal Structure

The SVB DAO will be part of the existing VC3 structures (see below section “What is VC3?”), which includes a DAO Community that is under VC3 DAO Foundation, a Cayman Foundation Company. The VC3 DAO intends to establish a sub-DAO specifically for the formation and governance of this SVB DAO initiative.

The investment itself will be through a new Limited Partnership set up for this intended purpose (as detailed in section “Our Approach / Use of Proceeds”), and would utilize the existing VC3 Investment Manager and General Partnership, both of which are based in the British Virgin Islands. While the investing entity is a traditional (off-chain) entity for compliance purposes, VC3 plans to tokenize the Limited Partnership as soon as practically possible.

All investors in the SVB DAO token must be accredited investors or qualified purchasers (see section “How to Invest and Participate”).

The benefits of this structure is that legal precedents exist and the setup and operationalization of the DAO can be done quickly and effectively. Moreover, given the traditional setup, the potential to quickly onboard Limited Partners is higher, allowing SVB DAO to get off the ground quickly and support the ecosystem in a compliant manner.