Investing.
Traditional VC/PE
DF will participate in traditionally structured VC Series B or later investments in energy, transportation, and communication technologies; and PE investments in commercial office properties greater than 50,000 sft.
DF primarily invests in Seed and Series A startups. Where appropriate, DF prefers using its specialty term sheets, the8fund or LIFOGate.
the8fund
the8fund is designed to support either startups that are positioned to quickly generate revenue or established services businesses that require gap funding to transition ownership. The primary features of the8fund are:
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Single investment in the startup or company
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No-interest repayment of 2x the investment
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Monthly payments of 8% the startup or company's top-line revenue until repaid
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Upon repayment, option for investors to purchase up to 8% of startup or company equity at 8x company revenue at repayment
LIFOGate
LIFOGate is designed to support traditional early stage startups in a gated manner that reduces financial risks disproportionately shouldered by Angel Investors. The primary features of LIFOGate are:
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LIFOGate raise is projected to cover 18 to 36 months of operations
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Monies are disbursed to the startup quarterly, with the cost per share allowed to increase each quarter based on an independent valuation of the startup
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Payments to the startup are made by calling investor commitments in the opposite order in which they were made (i.e. the last investor to commit to the raise is the first to be called to fund a quarterly disbursement - "LIFO")
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Equity vests across all investors each quarter proportional to their commitment
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If the startup does not hit a quarterly milestone outlined in the term sheet (i.e. an investment "Gate"), investors may sell their commitment and any future equity awards to another current investor