Very early projects such as the ones PIPE develops often find raising money difficult, to solve this problem PIPE is launching the PIPE General Fund DAO, a Hybrid-DAO the details of which can be found in our white paper, here
A project can only be funded once all of the work has been done and all of the questions asked and answered and all the forms and documents have been completed, or reasonable plans exist to do them. All projects will at some point have to state, "we have not done this yet", but as long as there is a acceptable plan for how they will do it, then the risk is measurable. It is at this point when the money needs to be made available to the new project.
This is done in a way that reduces risk and spreads the requirement for money along a roadmap at known milestones and in small amounts over a longer time. This makes sure that money is available to the management team when it is needed, but that money is provided only when certain tasks have been completed. This is a "no chance for second thoughts" process, the KPI is signed off, the funds are released.
The benefits to this approach are: allowing the management team to focus on delivering the business plan safe in the fact that money is available at each stage, limiting investment exposure to the business for investors until key parts of the plan are delivered and providing long term, patient money that fits the need of the business.
Before any money can be given, every project is independently reviewed by an investment committee who have the final authority to approve investment, following which the project is approved for funding but is left ‘on hold’ for 30-days.
This hold period allows for all investors in the system, including PIPE General Fund DAO, to review the project, all background information and choose, through a vote, to invest or not in a specific project. (NOTE: The nature of a gDAO investment position is that it is not allowed to not participate in the initial distribution of funding responsibility of an IIC approved project, but can immediately trade out. Other Investment Positions are allowed to express a preference level for participation.
The default position for ALL investors is that every project will be invested in at this point, so if you don’t want to vote or get involved with the DAO, then your funds will be invested on your behalf alongside other investors and you will have a share in ALL projects funded (as long as you have funds available in the system).
For more information on the investment and DAO, please see FAQs and the white paper.
Join Us for Free – register as a TTO, academic, investor, associate or observer. Post projects for FREE VALIDATION, see opportunities develop, join the investment as a co-investor or get involved as a founder/manager to deliver funded projects.
The Lab to IPO (or license ... ) pathway