Investors


DC7 is currently speaking only with accredited investors who wish to invest in amounts of US$175,000 or smaller.  
  • We are not seeking seed or angel capital for DCproper.  
  • Committed capital is placed in an interest-bearing account until it is allocated.  If possible, we will provide web/phone access directly with the bank that holds these funds to all investors.  
  • Any unallocated money is returned in full with interest minus some costs which are disclosed upfront.  Funds are committed in 12 month intervals.
  • Investors must approve all money that is allocated by reviewing proposed projects and signing an approval form which will specify the allocation amount.  
  • Investor Allocation Requests will likely be in $5,000 increments ranging between $5-25K.  This capital may be combined with Idea Sponsor contributions of $5-10K and DC7 contributions of $1-5K (total of $10-40K initial capital) to form a new entity.  The investor can request to receive amounts in a certain range, but must either accept or deny specific requests.  
  • All terms are straight equity (% ownership) in the corresponding LLC.  We will not consider any other type of structure, including preferred returns, loans, mezz-type deals, etc. 
  • Exit Strategy: New entities are prototypical and risky in nature and, as such, there is no predetermined exit strategy.  Our goal is to provide a return of 25-40% or greater per year over a basket of seven ventures and a time frame of 5 years.  Our analysis shows that for 7 ventures of this nature, 3 will lose everything, 2 will produce revenues eventually but will not cash flow, 1 will break even, and one will return between 80-3200% through either cash flow or further funding.
  • This is a new concept.  We have no track record for this at all; only statistics from similar endeavors.  We suggest that all investors plan on participating in at least 7 ventures over time.
  • All investors must be accredited investors.  We may ask you to verify that the total capital you invest is less than 5% of your overall portfolio.

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