# How do members of The LAO make investment decisions?
In the spirit of The DAO, The LAO is entirely member directed and managed and any blockchain-based project can apply for funding from The LAO. As a member, you should have some experience in evaluating and investing in startups relying on digital assets.
Each member will have the opportunity to nominate any applicant for funding through the DApp. Once nominated, members or their delegates will have the right to vote on whether to invest in a project through the DApp.
If more members agree vote for an investment than reject an investment during the applicable voting period, The Members will authorize the investment. After a seven day period to enable Members to "rage quit," The LAO DApp will generate the necessary legal agreements and send them to a designated representative for signature. Once digitally signed, The LAO will transfer the investment to the project.
A LAO member should understand and acknowledge that they must bear the economic risk of this investment.
# Will The LAO have a general partner?
No, unless the Members make such a decision to appoint a general partner (but that wouldn't be in the spirit of things).
# Will The LAO operate via a thesis?
The LAO is an emergent experiment and thus there is no express investment thesis for The LAO. Members can work together to formulate a thesis and explore investment opportunities. They have the right to develop any investment thesis they agree on.
# What are the terms of investments made by The LAO?
Members will have the right to set the terms of any investment into projects. By default, and unless otherwise agreed, The LAO DApp will be initially configured to make $50,000-$100,000 investments in projects (in Ether) via a convertible note (opens new window) that will give The LAO the right to equity or the right to participate in a future token sale.
The LAO DApp also has the option to be configured to make series seed (opens new window) investments in projects in exchange for equity or project token rights, if the members decide to make a larger investment.
# Can foreign entities receive investment from The LAO?
Yes. However, initially, The LAO will only make investments in projects treated as C corporations for tax purposes.
If members of The LAO decide to invest in other entities, including entities with different tax treatment, the members by a majority vote have the right to form one or more legal vehicles or to take further action to accommodate the investment.
# What happens if there are multiple proposals for investment? How do The LAO members make decisions?
Proposals are voted on sequentially to ensure that every application for funding is actually voted on. It also gives The LAO members time to withdraw their undeployed capital (i.e., "rage quit," described further here) if they do not want to participate in the investment.
# What is the investment period for The LAO?
The LAO has no express investment period. Members can make investments until all contributed capital has been allocated or withdrawn, as discussed further in these FAQs.
# Does The LAO's service provider have any rights to make investment decisions?
The service provider has no role in making investment decisions.