“What process do we (the DIF) use to decide to invest”
I answered this question, however I feel like I could do a better job answering this question.
First off, meetings are governed by Robert’s rules. This means that naively all an investment takes is a motion to invest, a second, and four of six to vote yes. Then the supervisors would ask the directors to carry out the investment. Practically, motions to invest need to have more details than just an off the cuff motion.
The process of deciding to invest or not needs to have some flexibility. Each proposed deal could have aspects that are unique to that deal. However, we could break investment decisions into several stages. At any stage, supervisors may decide not to go forward.
1) Introduction 2) Meeting 3) Identify possible partnership 4) Due diligence 5) Negotiation 6) Motion to invest OR motion to decline investment
1) Introduction Someone contacts a supervisor and pitches an investment. If the supervisor would like to spend meeting time on the pitch, they could email me and I’ll add them to the agenda. Lately, I have have started including “item from the floor” as an item on the agenda. This means that anyone can introduce a new topic in the meeting.
2) Meeting Generally, we will invite a representative from the investment to a full board meeting. Sometimes, in the interest of time, a few supervisors will meet with a partner and the recording is shared with all supervisors. Meetings with investment representatives usually involve lots of questions that go both ways. We explain what the DIF is and look for what the DIF brings to the table as much as we look at what the investment brings to the table.
3) Identify possible partnership At this stage we usually identify what amount of investment is appropriate. We ask questions like:
* Does this deal have an appeal specific to Dash, or Dash users? * How does...