Process

DECISION MAKING

1. Meet company (sometimes many times informally or just getting to know each other.)
2. Meet the company about fund raising.
3. Diligence and internal discussions.
4. Partnership meeting + blink vote.
5. Discuss.
6. Diligence team digs in.
7. Diligence team brings to managing partners for approval with partial DQM.
8. DQM + Negotiation.
9. Advisory Committee Approval.
10. TS signatures.
11. Legal.
12. Wire.

TIMELINES

PRE-SEED

• Our process tends to be iterative as we are learning about the market, the customer opportunity, etc. jointly with the entrepreneur.
• We sometimes work with the entrepreneur to introduce them to a signicant number of references.
• Most entrepreneurs don't have everything in order for these types of deals (documentation, etc.) which tends to protract timelines.
• From experience, successful deals at this stage take anywhere from a month to 3 months between a rst meeting ("with an intention to fund" , ie. about actual fund raising) and term sheet signing.
• We may pass or things might go silent because lack of t or the entrepreneur needing to gure out some key fact about their own business for a period and a new meeting "with an intention to fund" might occur, restarting the clock.

SEED

• These processes tend to be quicker, assuming the entrepreneur has everything in order and is able to facilitate reference calls quickly.
• This is easier, as well, because we can point to data to help qualify and understand customer demand.
• While we prefer to do reference calls before term sheet, we are aware of some of the competitive dynamics and can compromise based on competitive dynamics in the market, but want to be clear that this weakens the commitment to a term sheet.
• From experience, successful deals at this stage often take anywhere from 2 weeks to 2 months between a rst meeting (with an "intention to fund", ie. about actual fund raising) and term sheet signing.
• We may pass or things might go silent because lack of t or the entrepreneur needing to gure out some key fact about their own business for a period and a new meeting "with an intention to fund" might occur, restarting the clock

BLINK VOTING

Vote on an investment after a pitch. We rate opportunities on a 4-point scale:

1. I love it. If you don’t lead this investment, I will.
2. I like it. I agree that you should lead this investment.
3. I support you.
4. High-conviction veto / o strategy

The 3/I support you vote is a “no”. But the language of “I support you” is a promise that if we do make the investment, we support the company and the lead partner as though we were a 1 or 2 vote.

The 4 vote is a high-conviction veto. Also, there may be some “no’s” where a partner really can’t say “I support you” in good faith.

Then we discuss and designate a deal team to dig in.

$> 600k Checks

1. deal sponsor from the team
2. managing partners approve

LPAC can reject based on majority vote

$≤ 600k Checks

1. deal sponsor from the team
2. managing partners approve

LPAC provides thoughts