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Aera Force Fund General Partnership

The General Partnership

The Aera Force’s long term goal is to build a platform and community of members to co-build multiple funding vehicles to back as many incredible projects as possible for a sustainable future. The first Aera Force syndicate will be directed by the core team, which is referred to below as the “General Partnership” or “GP”.

Members of the GP 

The general partnership is a group comprised up of the Aera Force Founding team from Gotham Labs and Aera VC, as well as experts in the climate and regenerative finance space who are devoted to exploring the ecosystem. 

Responsibilities of the GP 

Members of the GP will oversee all day-to-day operations of the Fund, as well as DAO partnerships, communications and operations. 

Responsibilities include but are not limited to: 

Legal Operations - this includes reviewing all KYC, investor accreditation, investment contracts and equity transfers, confidentiality, sustaining the legal entity supporting Aera Force, and all other necessary legal actions that must be taken.

Finance and Accounting Operations - While transparent, the GP will contain multiple CPAs and CFAs that maintain cap tables, support the diligence of potential investments, monitor the DAO’s financials, etc.

Deal Operations - certain members of the GP will serve as guides of the investment process, and in some case as point people (Deal Leads) for projects being considered for investment. They will also serve on the governing group guiding investments from opportunity to transaction and as the last screening step before any investment is brought before the community.

General Partner Compensation: Carry

General Partners of venture investors are compensated through a performance fee known as “Carry”. Carry represents a percentage of the net gain of an investment return. For example, if an investment is made for $100 and turns into $1000, carry is calculated based on the $900 uplift. 

Key Carry Terms: 

Carry for the Syndicate will be attributed on a deal-by-deal basis as deals are exited

Carry will accrue and only begin to be distributed to the GP after after 100% of investor proceeds (across the full Syndicate investment) have been returned as capital - ie, until 2000 ETH has been returned to investors.

Any subsequent proceeds, will first pay out Carry until accrued Carry from exited deals has been fully distributed to the GP. From that point on, any further proceeds will be split according to the relevant Carry share of each subsequent deal.

Carry will be subject to a performance accelerator outlined below. The accelerators will only apply to the additional proceeds after the previous tier has been reached. For example, after a 5x return, 30% carry will be applied only to the portion of returns from 5x through to 50x (not on the entire amount of proceeds). In the example given above, 20% carry would apply from dollar $501, through to $999, not the entire $900 uplift.

Table

Deal by Deal Carry Performance Accelerator

Hurdle

GP Carry

Token Holder Return

Until initial capital contribution repaid to LPs.

100%

Carry applied to proceeds after 1X Return has been achieved

20%

80%

After 5X Return

30%

70%

After 50X Return* (See Note below)

20%

50%

*NOTE: After a 50x return, the GP carry drops back to 20%, and token holder return drops to 50%. The remaining 30% goes to Treasury for community-governed deployment funding grants, non-profit endeavors, or industry research projects. 

Aera Force Fund General Partnership

The General Partnership

Members of the GP

Responsibilities of the GP

General Partner Compensation: Carry

The General Partnership

The Aera Force’s long term goal is to build a platform and community of members to co-build multiple funding vehicles to back as many incredible projects as possible for a sustainable future. The first Aera Force syndicate will be directed by the core team, which is referred to below as the “General Partnership” or “GP”.

Members of the GP 

The general partnership is a group comprised up of the Aera Force Founding team from Gotham Labs and Aera VC, as well as experts in the climate and regenerative finance space who are devoted to exploring the ecosystem. 

Responsibilities of the GP 

Members of the GP will oversee all day-to-day operations of the Fund, as well as DAO partnerships, communications and operations. 

Responsibilities include but are not limited to: 

Legal Operations - this includes reviewing all KYC, investor accreditation, investment contracts and equity transfers, confidentiality, sustaining the legal entity supporting Aera Force, and all other necessary legal actions that must be taken.

Finance and Accounting Operations - While transparent, the GP will contain multiple CPAs and CFAs that maintain cap tables, support the diligence of potential investments, monitor the DAO’s financials, etc.

Deal Operations - certain members of the GP will serve as guides of the investment process, and in some case as point people (Deal Leads) for projects being considered for investment. They will also serve on the governing group guiding investments from opportunity to transaction and as the last screening step before any investment is brought before the community.

General Partner Compensation: Carry

General Partners of venture investors are compensated through a performance fee known as “Carry”. Carry represents a percentage of the net gain of an investment return. For example, if an investment is made for $100 and turns into $1000, carry is calculated based on the $900 uplift. 

Key Carry Terms: 

Carry for the Syndicate will be attributed on a deal-by-deal basis as deals are exited

Carry will accrue and only begin to be distributed to the GP after after 100% of investor proceeds (across the full Syndicate investment) have been returned as capital - ie, until 2000 ETH has been returned to investors.

Any subsequent proceeds, will first pay out Carry until accrued Carry from exited deals has been fully distributed to the GP. From that point on, any further proceeds will be split according to the relevant Carry share of each subsequent deal.

Carry will be subject to a performance accelerator outlined below. The accelerators will only apply to the additional proceeds after the previous tier has been reached. For example, after a 5x return, 30% carry will be applied only to the portion of returns from 5x through to 50x (not on the entire amount of proceeds). In the example given above, 20% carry would apply from dollar $501, through to $999, not the entire $900 uplift.

Table

Deal by Deal Carry Performance Accelerator

Hurdle

GP Carry

Token Holder Return

Until initial capital contribution repaid to LPs.

100%

Carry applied to proceeds after 1X Return has been achieved

20%

80%

After 5X Return

30%

70%

After 50X Return* (See Note below)

20%

50%

*NOTE: After a 50x return, the GP carry drops back to 20%, and token holder return drops to 50%. The remaining 30% goes to Treasury for community-governed deployment funding grants, non-profit endeavors, or industry research projects. 