22-RFP-006-TH Addendum 2.pdf

ADDENDUM ACKNOWLEDGEMENT FORM

Addendum No. 2

SOLICITATION NO.: 22-RFP-006-TH

SOLICITATION TITLE: Investment Management Services

OPENING DATE: September 15, 2022 at 3:00 P.M., EST

DATE: August 26, 2022

Please be advised that the following changes are applicable to the original and/or previously amended specifications of the above referenced RFP.

Changes to the Specifications are indicated by underscore, deletions are indicated by a strikethrough.

Addenda or clarifications to this RFP will be posted on the VIP system. It is the Respondent’s responsibility to monitor VIP for any solicitation updates.

1. Section B.6, Calendar of Events is hereby amended as indicated below:

B.6 Calendar of Events Listed below is the calendar of important actions and dates/times by which the actions must be taken or completed. If DEO finds it necessary to change any of these dates/times, it will be accomplished by addendum.

Time is stated in terms of local time in Tallahassee, Florida.

Estimated Calendar of Events Date and Time

1.

Date of Issuance and publication on the Florida Vendor Information Portal (VIP) website at:

https://vendor.myfloridamarketplace.com/search/bids

8/2/22

2.

Technical Questions due from prospective Respondents (Only email inquiries will be accepted.)

8/16/22 @ 5:00pm

3.

Anticipated Posting of Questions and Answers to the Florida Vendor Information Portal (VIP) website (via addendum) at:

8/23/22

4. Proposals Due and Opened

107 East Madison Street, Caldwell Building, Tallahassee, Florida 32399 9/12/22 at 3:00PM 9/15/22 at 3:00 PM

5. Anticipated Evaluation of Technical Proposals 9/16/22 – 9/21/22 9/21/22 – 9/26/22

6. Anticipated Posting of Notice of Intent to Award

9/26/22

10/3/22

2. Section B.36.1, Technical Proposal, is hereby amended as indicated below:

The Technical Proposal package shall be prepared by each Respondent utilizing 8.5” x 11” paper.

The Respondent’s Technical Proposal may not exceed 150 pages, including any exhibits or attachments. DEO will not consider any pages of a proposal in excess of this limitation.

Using the description of work outlined in Section B.18 above and Section C, Respondents shall prepare their Technical Proposal Package in the order outlined below, with the sections tabbed for ease of identification and review.

The Technical Proposal will consist of the following and shall follow the format listed:

• Cover Sheet - DEO Solicitation Acknowledgement Form

The Respondent shall complete, sign, and return the “DEO Solicitation Acknowledgment Form” with its proposal submittal. This form must be completed and signed by a representative who is authorized to contractually bind the Respondent. If a Respondent fails to submit a signed DEO Solicitation Acknowledgement Form with its proposal, DEO reserves the right to contact the Respondent by telephone for submission of this document via email with follow up via mail. This right may be exercised when the proposal has met all other requirements of the solicitation.

If a Respondent submits a proposal as a joint venture, each member of the joint venture must complete and sign a separate Solicitation Acknowledgement Form.

• Tab 1 – Level of Experience & Prior Results

The purpose of this section is to allow DEO to determine the extent of the Respondent’s overall experience and capabilities providing services similar to those requested by DEO in this RFP, and to assess how likely the Respondent is to successfully perform such services.

For each subsection, please include in your answer a description of your nexus to Florida, including number of investments, capital under management, capital raised, sources of capital, number of companies invested in, and track record.

A. Please provide a brief history of your overall experience and capabilities, emphasizing experience and capabilities making direct investments in Florida Businesses that operate in technology sectors that are strategic to Florida, including, but not limited to, enterprises in life sciences, information technology, advanced manufacturing processes, aviation and aerospace, and homeland security and defense, as well as other strategic technologies. To the extent you believe any parent or other affiliate’s experience or capabilities are relevant, please provide the same along with a justification of relevance. Please include a discussion of your experience and capabilities in marketing, targeting, outreach, and investing in businesses owned by Socially and Economically Disadvantaged Individuals (SEDI) and Very Small Businesses (VSB) (as those terms are used in the SSBCI Law).

B. Please describe any advisory services you have provided to other state sponsored venture capital programs. Identify the client, including providing a point of contact, along with name, title, phone number, and email.

C. Assets Under Management Please include the following table or a similar table in your Proposal:

Account Type Asset Amounts Asset Amounts for Accounts Located in Florida

Number of Accounts

Number of Accounts Whose Principal Location is Based in Florida

Corporate Public Fund Union/Multi- Employer

Foundation and Endowment

Insurance High-Net-Worth Individuals

Sub-Advised Assets

Other (please explain)

Total

D. Performance Reporting

(1) Describe your performance reporting and evaluation services.

(2) What methods and sources of data do you use in calculating investment performance of a client's portfolio? Do you comply with the Association for Investment Management and Research (AIMR) standards for rate of return calculation? Do you reconcile your calculated performance with investment managers and custodians? Describe this process.

(3) How often are performance reports produced and delivered? Include a sample performance evaluation report with your response.

(4) Discuss the performance metrics you are capable of providing.

(5) Describe how benchmarks are chosen or developed. Describe your custom benchmark capabilities. Explain how you choose what benchmarks are used for certain portfolios.

(6) Describe the track record of previous investments with a similar fund of funds investment and the funding structure of those investments.

(7) Provide samples of performance reports that you would use for the Equity Capital

Program (ECP).

• Tab 2 – Quality of Management

The purpose of this factor is to identify key personnel and to assess how likely you are to successfully perform based on your personnel’s experience and your incentivization plan.

A. Identify the consultants and other key personnel who would perform services for the ECP.

(1) Identify the role each would serve, and indicate the prior relevant experience each has for their proposed role, length of investment experience, and the length of their tenure with the Respondent. Please provide resumes.

(2) Describe the amount of anticipated weekly hours each consultant or key personnel will dedicate to the ECP.

(3) Identify where such consultants and other key personnel will be based and where they are currently based.

B. Please explain the compensation and incentive structure for key personnel that you will use for the ECP.

C. Please provide a short biography or resume of the persons responsible for your overall risk management.

D. Describe the availability of your personnel who will be dedicated to the ECP for meetings and calls with ECP personnel, investment company management, co-investors, and partners.

• Tab 3 - Investment Philosophy and Process

The purpose of this factor is to understand your underlying investment philosophy and the process for evaluating a potential investment, performing due diligence, and making investment recommendations for investments in Florida Businesses using ECP funds.

A. Investment Philosophy and Process

(1) Please briefly describe your investment philosophy. How has it changed over time?

(2) Please discuss your investment strategy, screening processes, and portfolio construction methodology.

(3) Are portfolios managed by individual managers or teams?

(4) How frequently are investment policy or strategy meetings held?

(5) Explain your valuation process for investments.

(6) Describe your investment allocation policy.

B. Research

(1) Please describe your approach to investment research. Please indicate relationships with researchers and academics outside of your firm.

(2) Please give examples of how your research has been integrated into your products and services and how you anticipate your research capabilities to be used to meet the ECP’s goals and the SSBCI requirements.

(3) What tools do you use to evaluate managers and the market? Did you develop these tools in-house or purchase them from vendors?

C. Marketing

(1) Describe your strategy for marketing the ECP, including whether you intend to use any third-party or subcontractors to perform marketing and outreach services.

(2) Describe how you will engage in marketing to secure additional capital with respect to ECP investments and source the best investment opportunities for the ECP.

D. Deal Flow

(1) Describe what your approach will be to deal flow for the ECP including the process you will employ to generate investment opportunities meeting the SSBCI requirements, how you will perform due diligence, present investment opportunities, engage in ongoing management and compliance activities, and exit strategies.

(2) Describe how you will utilize your existing network to identify investment opportunities.

E. Risk Management

(1) Describe and list third parties that you use for professional services, including banking, legal, tax, and auditing and the length of your relationship with each, respectively.

(2) Describe your insurance coverages, including for Directors and Officers, Errors and Omissions, Crime, Employment Practices and Liability, and Cyber Security and provide the current declaration page for each.

(3) Describe your Disaster Recovery and Business Continuity Plans, as well as a Cybersecurity

Policy.

(4) Describe your plan to comply with the requirements of the SSBCI Law and any guidance or F.A.Q. documents issued by the U.S. Treasury as it pertains to the ECP.

• Tab 4 – Fundraising Experience

The purpose of this factor is to understand your experience and ability to meet the leverage requirements of the SSBCI program.

A. Describe your process for raising funds for proof-of-concept, minimum viable product, and seed stage investments.

B. Describe your process for attracting additional capital to invest alongside ECP funds.

C. Describe how you will utilize your existing network to raise funds from local, regional, or national sources in order to attain maximum economic and job benefits for Florida.

D. Describe your expectations for co-investing Direct Investments presented as investment opportunities for the ECP and what approach you would utilize?

• Tab 5 – Plan for Achieving the Purposes of the State Small Business Credit Initiative

The purpose of this factor is to help DEO understand how you intend to perform the services in accordance with the statutory and regulatory requirements of the SSBCI and DEO’s application submitted to the U.S. Treasury, and to understand the benefits, efficiencies, and risks associated with your approach and to assess the approach accordingly. The laws, regulations, and guidance governing the SSBCI are publicly available at https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci.

A. Please state your understanding of the ECP and how you will ensure that the statutory and regulatory goals of SSBCI are achieved.

B. Describe how you will prioritize investment opportunities based on compatibility with the ECP requirements and what factors will be prioritized when presenting investment opportunities.

C. How will you measure whether the ECP is successful?

D. Direct Investments

(1) Describe your internal processes to identify and source potential Direct Investment opportunities in Florida Businesses operating in technology sectors strategic to Florida as it relates specifically to:

a. Angel or seed stage investments, including, as applicable, proof of concept and minimum viable product funding and

b. Series A funding.

(2) Describe your due diligence process to assess an overall Direct Investment opportunity including project assessment, market analysis, evaluation of products and services, management experience, job creation and retention, and financial capacity analysis.

(3) Describe how you will ensure that a potential Direct Investment opportunity meets the statutory and program requirements of the ECP from time of identification throughout the lifetime of the investment.

(4) Describe how you will evaluate Direct Investment risk including market size, potential competitors, market landscape, market entry strategies, price, product margin, and ability to generate revenue.

(5) Describe how you will evaluate a company’s technology including validating the technology and assessing risk associated with developing, producing, and selling its product, assessing successful market entry and a company’s ability to reach target customers within a reasonable timeframe.

(6) Describe your process for ensuring the ECP meets statutory and programmatic requirements.

(7) Describe your approach to achieving a diverse portfolio of investments geographically, by size, and by area of technology within the parameters of the ECP.

(8) Detail the background check process performed on potential Direct Investments, including any key personnel involved in the operations.

https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci

(9) Describe how you evaluate a company’s management team and leadership including relevant experience and past successes and failures.

(10) Describe what factors you will use to determine whether a business operates in technology sectors that are strategic to Florida.

(11) Describe how you will facilitate an exit of a Portfolio Company that no longer is Florida-based or no longer has significant business activities in Florida while managing any financial risk of the underlying investment.

(12) Describe how you will engage in active support and oversight of Portfolio Companies.

(13) Detail how you would handle any potential conflicts of interest, including but not limited to, relationships with management teams of potential Portfolio Companies or other co-investors. Detail how you would provide notice of any potential conflicts, your process for resolving, eliminating, and mitigating such conflicts, and how often you would check for potential new conflicts.

E. Nexus to Florida

(1) Describe the locations and functions of your existing or proposed Florida offices.

(2) How many current full-time employees would be assigned to the ECP and working from your Florida offices? If not current, how many would you intend to hire and by what date?

(3) If your principal place of business is not located in Florida, describe how many full-time employees will work from your Florida offices that will have substantial business dealings while serving as the investment manager for the ECP.

• Tab 6 – Market Analysis

The purpose of the analysis is to demonstrate your knowledge and understanding of Florida’s business climate as it relates to early-stage direct venture capital investments. The market analysis should include, but is not limited to, how venture capital is deployed in Florida:

(1) By geography, including in rural communities and “underserved communities” as defined in Executive Order 13985;

(2) By sector or industry;

(3) By stage of investment;

(4) By fund manager;

(5) By size of fund established;

(6) By size of deals;

(7) By number of deals funded, including any follow-on rounds of funding;

(8) To businesses that are minority-owned, women-owned, veteran-owned, or owned by persons with a physical handicap; and

(9) Including exit trends and timelines.

Please include a general discussion of historic trends and future projections. Your market analysis should thoroughly discuss the specific legal and regulatory requirements of the ECP and how you will achieve those requirements in light of the market trends and conditions.

• Tab 7 – Past Performance Reference Background

Please provide three references that you believe are similar in size, scope, and complexity to the services being solicited. In addition to the information required by Attachment A, for each reference, please:

(1) Identify the client and project title/contract number, and provide a point of contact, along with their name, title, phone number, and email;

(2) State the dates of performance;

(3) State the size of the reference;

(4) State scope of engagement for the reference;

(5) State the complexities of the reference;

(6) State the similarities and differences between the reference and the instant solicitation; and

(7) State the results achieved for each reference.

• Tab 8 - Duty of Continuing Disclosure of Legal Proceedings o If applicable, Respondent must disclose, as part of its Proposal, all prior or on-going civil or criminal litigation, investigations, arbitration or administrative proceedings (“Proceeding(s)”) involving Respondent (and each subcontractor) in a written statement to DEO. Thereafter, Respondent has a continuing duty to promptly disclose all Proceedings upon occurrence.

o This duty of disclosure applies to Respondent’s or its subcontractor’s officers and directors when the Proceeding relates to the officer or director’s business or financial activities.

Details of settlements that are prevented from being disclosed by the terms of the settlement may be annotated as such.

o Respondent shall promptly notify DEO of any Proceeding relating to or affecting the Respondent or subcontractors’ business. If the existence of such Proceeding causes DEO concern that Respondent or subcontractors’ ability or willingness to perform the resulting contract is jeopardized, Respondent shall be required to provide DEO all reasonable assurances requested by DEO to demonstrate that:

o Respondent will be able to perform the resulting Contract in accordance with its terms and conditions, and o Respondent and/or its subcontractor(s) has/have not and will not engage in conduct in performing services for DEO which is similar in nature to the conduct alleged in such Proceedings.

• Tab 9 – Attachments

Proposals to this RFP must include the following documents and certifications:

1. Reference Form (Attachment A)

2. State Project Plan (B.38), include Drug-Free Workplace Certification (Attachment C)

3. Disclosure Statement/Conflict of Interest Disclosure (Attachment D)

4. Certification Regarding Debarment (Attachment E)

5. Certification Regarding Lobbying (Attachment F)

6. List of Subcontractors (Attachment G), if applicable

7. Certified Minority Business Enterprise (CMBE) Certification, if applicable. Attach a copy of your CMBE Certification, if certified with the Florida Department of Management Services.

8. Please provide a copy of your most recently prepared Uniform Application for Investment Adviser Registration Part 2: Uniform Requirements for Investment Adviser Brochure and Brochure Supplements. If you are registered as a broker-dealer, please provide a copy of your current form certifying that the Broker Dealer is in good standing. (Attachment L)

9. Respondents to this RFP must include proof that they are registered with the E-Verify system as defined in s. 448.095, F.S., to verify the work authorization status of all newly hired employees.

3. Section C, Scope of Work, C.3 General Description, is hereby amended as indicated below:

C.3 General Description

Florida businesses that will be targeted for direct investment under the ECP will generally be required to meet the following criteria:

Business Criteria

1. Companies must be Florida-based or locating in Florida. The ECP funds may not be used as an incentive to relocate a business from another state.

2. Companies cannot employ 750 or more individuals

3. Companies must be in compliance with all laws of the United States and State of Florida

Funding Limitations

1. Funds may not be committed to a single investment round that will exceed $20 million in a Florida business.

2. For early-stage investments (as those terms are used in the SSBCI Capital Program Policy Guidelines), a qualifying investment may only include up to $125,000 in SSBCI capital, with a maximum round of $375,000.

3. Funds must be matched on at least a 1:1 basis (at least $1 of private capital for each $1 of ECP capital).

4. ECP funds should not represent more than 80% of capital at risk (private capital must represent at least a 20% risk of loss).

5. Each investment must demonstrate an acceptable leverage opportunity, in order to meet the life-of-program leverage requirement of 10:1 ($10 of private capital participation for each $1 of ECP funds invested).

Targeting and Outreach. The Contractor should engage in targeted marketing and outreach to ensure ECP funds are available for SEDI and VSB companies. The Contractor should work with other institutions around the state to support SEDI and VSB populations.

4. Section C, Scope of Work, C.5 Contractor Responsibilities, is hereby amended as indicated below:

C.5 Contractor’s Responsibilities

Contractor’s responsibilities under the resulting Contract are as follows:

1. Fund Formation: Establish the legal and organizational structure of an investment fund, including formation of the investment reporting processes which will satisfy the SSBCI Guidelines.

2. Provide office staff that is available during standard Business Days to respond to DEO staff questions.

3. Provide office staff that is able to meet with DEO staff for regularly scheduled briefings.

4. Establish relationships with a wide range of research, economic development, venture development and investment organizations to ensure that investment candidates are aware of the ECP and that it can attract a wide range of co-investors. This includes outreach to SEDI and VSBs as defined by U.S.

Treasury SSBCI guidelines.

5. Structure and negotiate investment transactions that comply with the SSBCI guidelines including legal and reporting documentation.

6. Establish practices for oversight of Portfolio Companies and investments.

7. Establish practices based on the SSBCI guidelines to uncover and avoid potential conflicts of interest.

8. Provide quarterly and annual reports on ECP activities in accordance with the SSBCI Guidelines.

9. Establish reporting mechanisms, audits, and other internal controls and compliance activities to enable compliance with the U.S. Treasury SSBCI program.

10. Provide a secure environment to store, as necessary, confidential information.

11. Follow the Investment Guidelines:

• Investment Guidelines: All applicable investment restrictions, policies, and agreements relating to investments by the Investment Manager, as may be amended from time-to-time, including but not limited to all provisions of applicable state and federal law and the terms of the resulting contract.

(i) ECP Funds must be used only to invest in Florida Businesses.

(ii) ECP Funds may be used to provide either equity financing or convertible debt financing for investment in Florida Businesses.

(iii) ECP funds may not be deployed in an amount greater than 50% of the total overall loan or investment, including any follow-on investments.

(iv) The ECP shall be used to target Florida Businesses with an average size of 100 employees or less for investments made using ECP Funds, but in no event may ECP Funds be used to provide a loan to or invest in an entity that has more than 250 employees.

(v) The ECP shall be used to target Florida Businesses for loans or investments made using ECP Funds with an average principal amount of $2,500,000 or less. However, in In no event may ECP Funds be used to provide a loan to or invest in a Florida Business in a financing round that is in excess of $20,000,000 or using SSBCI funds in a financing that is in excess of $10,000,000.

(vi) Without the prior written consent of DEO, the Investment Manager may not authorize a new investment using ECP Funds in any entity that, prior to such investment, is held directly or indirectly by the Investment Manager or any of its Affiliates.

(vii) The Investment Manager shall complete at least on an annual basis, a conflict of interest form to disclose all existing investments held directly or indirectly by the Investment Manager or any of its Affiliates, to update such conflict of interest form when information changes, and to provide written notice to DEO of such conflict prior to a meeting at which any action by the FOF Board occurs on such investment.

(viii) DEO shall review and approve the Investment Manager’s valuation calculations of all equity and convertible debt investments made with ECP Funds. Valuations shall be performed in accordance with standard industry practice, which may include the most recent version of the International Private Equity and Venture Capital Valuation Guidelines.

(ix) The Investment Manager shall undertake reasonable efforts to minimize the fees, costs, and expenses associated with management of the ECP Funds, including closing a round of financing. The Investment Manager shall use ECP Funds in the best and highest possible manner, in order to maximize the return on investment to the State and to create more jobs paying higher wages for the citizens of Florida.

(x) The Investment Manager shall complete at least on an annual basis, a disclosure of all investments that are co-invested with ECP Funds held directly or indirectly by the Investment Manager or any of its Affiliates, to update such information when information changes, and to provide written notice to DEO prior to any action on such investment.

5. Attachment B, Cost Proposal is hereby deleted and replaced with the following:

- Remainder of Page Intentionally Left Blank -

ATTACHMENT B

COST PROPOSAL

Instructions.

In the table below please include your proposed fee structure.

Assumptions:

• For Total Initial Term, use the Contractor’s fee rate or amount:

o To calculate Management Fees, assume $10 million in Assets Under Management (as that term is defined in this RFP) for each of the five years.

o To calculate Performance Fees, assume $1 million in Cumulative Net Profits (as that term is defined in this RFP) as a one-time exit.

o To calculate any Other Fees, please explain the fee type and the assumptions associated with calculating that fee.

• For Total Renewal Term, using the Contractor’s fee rate or amount:

o To calculate Management Fees, assume $50 million in Assets Under Management (as that term is defined in this RFP) for each of the five years.

o To calculate Performance Fees, assume $5 million in Cumulative Net Profits (as that term is defined in this RFP) as a one-time exit.

o To calculate any Other Fees, please explain the fee type and the assumptions associated with calculating that fee.

• For Total, calculate the sum of the Total Initial Term and the Total Renewal Term for each proposed Fee Type.

• For Grand Total, calculate the sum of the Total column.

Fee Type Rate or Amount Total Initial Term (5 years)

Total Renewal Term (5 years)

Management Fee

Performance Fee

Other Fees

TOTAL

Grand Total

The Response with the lowest fee structure relative to the limits set forth in section B36.2 of this RFP will be deemed the “lowest responsive Cost Proposal” for scoring purposes.

*Authorized Representative’s Signature

*Typed Name and Title of Authorized Representative

*This individual must have the authority to bind the Respondent.

6. Attachment I, Evaluation Criteria is hereby deleted and replaced with the following:

ATTACHMENT I

EVALUATION CRITERIA

Proposals will be scored according to the criteria outlined in section B.36, Instructions for Preparation of the Technical Proposal.

EVALUATION CRITERIA MAXIMUM

POINTS

AVAILABLE

A. Technical Response Submittal 140

1. Level of Experience & Prior Results 30

The purpose of this section is to allow DEO to determine the extent of the Respondent’s overall experience and capabilities providing services similar to those requested by DEO in this RFP, and to assess how likely the Respondent is to successfully perform such services.

For each subsection, please include in your answer a description of your nexus to Florida, including number of investments, capital under management, capital raised, sources of capital, number of companies invested in, and track record.

A. Please provide a brief history of your overall experience and capabilities, emphasizing experience and capabilities making direct investments in Florida Businesses that operate in technology sectors that are strategic to Florida, including, but not limited to, enterprises in life sciences, information technology, advanced manufacturing processes, aviation and aerospace, and homeland security and defense, as well as other strategic technologies. To the extent you believe any parent or other affiliate’s experience or capabilities are relevant please provide the same along with a justification of relevance. Please include a discussion of your experience and capabilities in marketing, targeting, outreach, and investing in businesses owned by Socially and Economically Disadvantaged Individuals (SEDI) and Very Small Businesses (VSB) (as those terms are used in the SSBCI Law).

B. Please describe any advisory services you have provided to other state sponsored venture capital programs. Identify the client, including providing a point of contact, along with name, title, phone number, and email.

C. Assets Under Management Please include the following table or a similar table in your Proposal:

Account Type Asset Amounts Asset Amounts for Accounts

Located in Florida

Number of

Accounts

Number of Accounts Whose Principal Location is Based in Florida Corporate Public Fund Union/Multi- Employer

Foundation and Endowment

Insurance High-Net- Worth Individuals

Sub-Advised Assets

Other (please explain)

D. Performance Reporting

(1) Describe your performance reporting and evaluation services.

(2) What methods and sources of data do you use in calculating investment performance of a client's portfolio? Do you comply with the Association for Investment Management and Research (AIMR) standards for rate of return calculation? Do you reconcile your calculated performance with investment managers and custodians? Describe this process.

(3) How often are performance reports produced and delivered? Include a sample performance evaluation report with your response.

(4) Discuss the performance metrics you are capable of providing.

(5) Describe how benchmarks are chosen or developed. Describe your custom benchmark capabilities. Explain how you choose what benchmarks are used for certain portfolios.

(6) Describe the track record of previous investments and the funding structure of those investments.

(7) Provide samples of performance reports that you would use for the Equity Capital Program (ECP).

2. Quality of Management 20

The purpose of this factor is to identify key personnel and to assess how likely you are to successfully perform based on your personnel’s experience and your incentivization plan.

A. Identify the consultants and other key personnel who would perform services for the ECP.

(1) Identify the role each would serve, and indicate the prior relevant experience each has for their proposed role, their length of investment experience, and the length of their tenure with the Respondent. Please provide resumes for each individual.

(2) Provide the number of anticipated weekly hours each consultant or key personnel will dedicate to the ECP.

(3) Identify where such consultants and other key personnel will be based while working on this project and where they are currently based.

B. Please explain the compensation and incentive structure for key personnel that you will use for the

ECP.

C. Please provide a short biography or resume of the persons responsible for your overall risk management.

D. Describe the availability of your personnel who will be dedicated to the ECP for meetings and calls with ECP personnel, investment company management, co-investors, and partners.

3. Investment Philosophy and Process 20

The purpose of this factor is to understand your underlying investment philosophy and the process for evaluating a potential investment, performing due diligence, and making investment recommendations for investments in Florida Businesses using ECP funds.

A. Investment Philosophy and Process

(1) Please briefly describe your investment philosophy. How has it changed over time?

(2) Please discuss your investment strategy, screening processes, and portfolio construction methodology.

(3) Are portfolios managed by individual managers or teams?

(4) How frequently are investment policy or strategy meetings held?

(5) Explain your valuation process for investments.

(6) Describe your investment allocation policy.

B. Research

(1) Please describe your approach to investment research. Please indicate relationships with researchers and academics outside of your firm.

(2) Please give examples of how your research has been integrated into your products and services and how you anticipate your research capabilities to be used to meet the ECP’s goals and the SSBCI requirements.

(3) What tools do you use to evaluate managers and the market? Did you develop these tools in-house or purchase them from vendors?

C. Marketing

(1) Describe your strategy for marketing the ECP, including whether you intend to use any third-party or subcontractors to perform marketing and outreach services.

(2) Describe how you will engage in marketing to secure additional capital with respect to ECP investments and source the best investment opportunities for the ECP.

D. Deal Flow

(1) Describe what your approach to deal flow for the ECP will be including the process you will employ to generate investment opportunities meeting the SSBCI requirements, how you will perform due diligence, present investment opportunities, engage in ongoing management and compliance activities, and exit strategies.

(2) Describe how you will utilize your existing network to identify investment opportunities.

E. Risk Management

(1) Describe and list third parties that you use for professional services, including banking, legal, tax, and auditing and the length of your relationship with each, respectively.

(2) Describe your insurance coverages, including for Directors and Officers, Errors and Omissions, Crime, Employment Practices and Liability, and Cyber Security and provide the current declaration page for each.

(3) Describe your Disaster Recovery and Business Continuity Plans, as well as a Cybersecurity Policy.

(4) Describe your plan to comply with the requirements of the SSBCI Law and any guidance or F.A.Q.

documents issued by the U.S. Treasury as it pertains to the ECP.

4. Fundraising Experience 20

The purpose of this factor is to understand your experience and ability to meet the leverage requirements of the SSBCI program.

A. Describe your process for raising funds for proof-of-concept, minimum viable product, and seed stage investments.

B. Describe your process for attracting additional capital to invest alongside ECP funds.

C. Describe how you will utilize your existing network to raise funds from local, regional, or national sources in order to attain maximum economic and job benefits for Florida.

D. Describe your expectations for co-investing Direct Investments presented as investment opportunities for the ECP and what approach you would utilize?

5. Plan for Achieving the Purposes of the State Small Business Credit Initiative 20

The purpose of this factor is to help DEO understand how you intend to perform the services in accordance with the statutory and regulatory requirements of the SSBCI and DEO’s application submitted to Treasury, and to understand the benefits, efficiencies, and risks associated with your approach and to assess the approach accordingly. The laws, regulations, and guidance governing the SSBCI are publicly available at https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci.

A. Please state your understanding of the ECP and how you will ensure that the statutory and regulatory goals of SSBCI are achieved.

B. Describe how you will prioritize investment opportunities based on compatibility with Program requirements and what factors will be prioritized when presenting investment opportunities.

C. How will you measure whether the ECP is successful?

D. Direct Investments

(1) Describe your internal processes to identify and source potential Direct Investment opportunities in

Florida Businesses operating in technology sectors strategic to Florida as it relates specifically to:

a. Angel or seed stage investments, including, as applicable, proof of concept and minimum viable product funding;

b. Incubator/accelerator funding; and

c. Series A funding.

(2) Describe your due diligence process to assess an overall Direct Investment opportunity including project assessment, market analysis, evaluation of products and services, management experience, job creation and retention, and financial capacity analysis.

(3) Describe how you will ensure that a potential Direct Investment opportunity meets the statutory and program requirements of the ECP from time of identification throughout the lifetime of the investment.

(4) Describe how you will evaluate Direct Investment risk including market size, potential competitors, market landscape, market entry strategies, price, product margin, and ability to generate revenue.

(5) Describe how you will evaluate a company’s technology including validating the technology and assessing risk associated with developing, producing, and selling its product, assessing successful market entry and a company’s ability to reach target customers within a reasonable timeframe.

(6) Describe your process for ensuring the ECP meets statutory and programmatic requirements.

(7) Describe your approach to diverse portfolio of investments both geographically, size, and area of technology within the parameters of the Direct Investment Programs.

https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci https://home.treasury.gov/policy-issues/small-business-programs/state-small-business-credit-initiative-ssbci

(8) Detail the background check process performed on potential Direct Investments, including any key personnel involved in the operations.

(9) Describe how you evaluate a company’s management team and leadership including relevant experience and past successes and failures.

(10) Describe what factors you will use to determine whether a business operates in technology sectors that are strategic to Florida.

(11) Describe how you will facilitate an exit of a Portfolio Company that no longer is Florida-based or no longer has significant business activities in Florida while managing any financial risk of the underlying investment.

(12) Describe how you will engage in active support and oversight of Portfolio Companies.

(13) Detail how you would handle any potential conflicts of interest, including but not limited to, relationships with management teams of potential Portfolio Companies or other co-investors.

Detail how you would provide notice of any potential conflicts, your process for resolving, eliminating, and mitigating such conflicts, and how often you would check for potential new conflicts.

E. Nexus to Florida

(1) Describe the locations and functions of your existing or proposed Florida offices.

(2) How many current full-time employees would be assigned to the ECP and working from your Florida offices? If not current, how many would you intend to hire and by what date?

(3) If your principal place of business is not located in Florida, describe how many full-time employees will work from your Florida offices that will have substantial business dealings while serving as the investment manager for the ECP.

6. Market Analysis

The purpose of analysis is to demonstrate your knowledge and understanding of Florida’s business climate as it relates to early-stage direct venture capital investments. The analysis should include, but is not limited to, how venture capital is deployed in Florida:

(1) By geography, including in rural communities and “underserved communities” as defined in Executive Order 13985

(2) By sector or industry

(3) By stage of investment

(4) By fund manager

(5) By size of fund established

(6) By size of deals

(7) By number of deals funded, including any follow-on rounds of funding

(8) To businesses that are minority-owned, women-owned, veteran-owned, or owned by persons with a physical handicap

(9) Including exit trends and timelines

Please include a general discussion of historic trends and future projections. Your market analysis should thoroughly discuss the specific legal and regulatory requirements of the ECP and how you will achieve those requirements in light of the market trends and conditions.

7. Past Performance Reference Background 10

Please provide three references that you believe are similar in size, scope, and complexity to the services being solicited. In addition to the information required by Attachment A, for each reference, please:

(1) Identify the client and project title/contract number, and provide a point of contact, along with name, title, phone number, and email;

(2) State the dates of performance;

(3) State the size of the reference;

(4) State scope of engagement for the reference;

(5) State the complexities of the reference;

(6) State the similarities and differences between the reference and the instant solicitation; and

(7) State the results achieved for each reference.

B. Past Performance References 10

C. Cost Proposal 100

D. Total Possible Points for the Response Submittal 250 Points

NOTE: The maximum available points (100 points in total) for the Cost Proposal Submittal will be awarded to the Respondent with the lowest responsive Cost Proposal. The remaining proposals from all other Respondents will be awarded a pro rata portion of points based on the following cost formula:

(A/B = C) x M = P

A = Lowest responsive Cost Proposal

B = Actual responsive Cost Proposal for each of the other Respondents

C = Pro rata portion (percentage) assigned for each of the other Respondents

M = Maximum Points Available for the Cost Proposal (= 250 points)

P = Points Awarded to each of the other Respondents