Capital Coordination Stream Continuation

Recipient: Lewwwk#4227

Wallet: 0x00D66b587984287e0f1C9325ef8F82d124A5d92F

Request:

• 7,500 $KRAUSE / month
• 7,500 $USDC / month

Paid monthly, at the end of each month, for December 2022 (retroactively), and January, February, and March 2023.

Protections:

• Stewardship team may cancel this agreement at any point.
• Community may submit a proposal to cancel this agreement at any point.
• $KRAUSE awarded will be locked until termination or end of term. While locked it will be recallable in whole or part for negligence or material underperformance of responsibilities as determined by a majority of either core team or stewards, or community vote duly passed.

Scope of Work

This proposal is a continuation of a previous stream that concluded November 30th, 2022.

The scope of work for this includes up to 3 days per week, or 12 days per month by Lewwwk#4227 focused on:

• Engaging with prospective capital partners, now including endowments, pension funds, and sovereign wealth funds.
• Supporting acquisition leads in coordination and structuring of capital required to complete an acquisition.
• Supporting other capital initiatives including Krause House Capital Collective and All In for Sport as required and able.

Purpose of this Work

Achieving our goals of buying an ownership interest in an NBA team and beyond require the capacity to make or facilitate investments of tens of millions or more. This work ladders up our credibility and capacity for doing so alongside our efforts to build credibility as a preferred ownership partner.

Results from Previous Work

Through work completed under the previous capital coordination streams Lewwwk, in collaboration with Commodore, Flex, and advisors:

• reviewed and/or engaged with multiple team opportunities in the NBA, European football, and other sports
• tracking 116 teams across the NBA and professional sport
• managed relationship with key advisors Luis Vicente and Michael Broughton
• explored and facilitated entity, banking, and contracting options for Krause House
• established a fiat on/off ramp for Krause House contracts
• explored compliant tokenization protocols and options for Fund 1 and future capital strategies
• worked with Peterrr to create Krause House Captial Collective to build a larger capital network and opportunity pipeline
• supported exploration of external capital options and spin-out strategies for HeatCheck
• provide venture formation guidance and support for ‘soothsayer’s project’
• supported development of All In For Sport to strategically build relationships across the sports ecosystem
• supported the Future of Sport roadmapping project to help inform strategic opportunity areas
• presented on Krause House as an example of DAO led sector transformation
• represented Krause House on the first privacy-protected multi-sig in the recent Constitution DAO 2 project.

Strategy Changes

While sports asset values continue to appreciate and remain in high demand, private equity formation has slowed due to worsening market conditions. As a result Lewwwk, along with advisors, prioritized our capacity to respond to specific opportunities, and intend to use our improving access to opportunities, including potential and actual transactions, to pursue a first close for Fund 1.

What Does Success Look Like

Outreach to capital partners and potential LPs will accelerate in the new year as we demonstrate improving access to acquisition opportunities. All activity is targeted toward overarching goals of acquiring a minority position in an NBA team and a first close on an acquisition fund. Progress may be evidenced in a number of ways including:

• Owner validation of Krause House Capital value proposition
• Interest and soft-commitments from qualified investors
• Engagement and validation from other key stakeholders

Market sentiment continues to be bearish with significant macro uncertainties looming that are beyond our control. While sports remains an attractive investment… outcomes continue to have heightened uncertainties.

Voting Options and Determination

1. Approve
2. Needs Significant Edits
3. Against
4. Abstain

Abstain votes are discarded. This proposal passes if option 1 (Approve) receives more votes than the greater of options 2 and 3.