I think we can probably pick a threshold where it’s risky to not know who we’re doing business with. Want to do business above X amount with us? Then we need to know who you are and that the things you say you’ve done in the past are true. Don’t like it? Find someone else to be the responsible party for your proposal.
I can think of other reasons we’d want to know who we are outsourcing our needs to, but just ask yourself where else in the world can you go and on the basis of some forum posts and maybe a Zoom call and be seriously considered for millions of DAI in funding?
This doesn’t need to be something onerous. But a basic level of confirming that people are not financial criminals or scammers is a must. We’re starting to throw around large amounts of money, and we need a way that’s not ad hoc to do due diligence on people.
I should stress this is not about any specific proposals before us right now – any due diligence will have to be ad hoc unfortunately. But we need to have a process in place so that basic due diligence is evenly applied to all future requests from unvetted parties to do business with us.
Otherwise we open ourselves up not just to the risk of being scammed or defrauded, but also just of being accused of not treating people equally when they come to us with proposals. So a process we can point to protects us from the most obvious attempts at fraud/conning, protects us from favoritism that promotes bad ideas for funding, and protects applicants from any discrimination that could prevent good ideas from receiving big funding.
I feel like this is a no-brainer. You can’t even be a bank teller without a credit check. Are we honestly going to fund or incubate startups that themselves have no history and not check on the people who are running them?
The proposed SES unit in particular should have an interest in shaping this process. @juan @wouter I believe are the folks I should have tagged at the beginning.