Request for Proposal: Legal Due Diligence on Investment Fund
Context and Overview
We are currently partnering with the German Development Agency (GIZ) to provide entrepreneurs with all of the support they need to launch and grow their businesses in Sulaimani, Iraq. Our program has included a recent Tech Incubator, Investment Readiness Workshops, and more. Our final focus area of our work is startup financing and investment.
As Five One Labs begins to focus on investment opportunities for entrepreneurs in Iraq, we are working in three areas: investment readiness for entrepreneurs, encouraging local investment into local businesses, and launching an independent venture capital (VC) fund to invest in startups in Iraq.
Starting in 2020, we are taking the first steps to launch a small VC fund to support growth-stage startups in Iraq and other extreme market environments.
About the RFP:
The Five One Labs team is pleased to bring on a legal firm to provide information on the legal and regulatory framework for launching an investment fund; to devise a series of options to create the fund; and to support us in creating the timeline and strategy for launching the fund.
We are hoping to learn from best practices in similar contexts to create the right legal structure and oversight to reduce risk for the fund management, our LPs, and our entrepreneurs.
Some topics to be covered in the research include:
What legal structure should the fund have?
Where should the fund be domiciled?
How can the fund comply with US and Iraqi legal and banking regulations?
How can the fund protect its managers and LPs in the Iraqi regulatory environment?
We will explain these topics and more during our introductory conversations with applicants.
About the Consultancy:
We are looking for a well-respected, innovative law firm to support the development of our investment fund strategy. The firm will take the lead on the legal due diligence for launching a fund to invest in Iraq startups. The firm will have a key role in ensuring that our strategy is based on sound legal and regulatory information.
Time Frame: We understand that this process may take some time, and Five One Labs will work with each firm to better understand their time frames. However, we would like to have the first proposed outcome (see below) complete by the end of March 2020.
Location: The firm location is flexible. While a firm inside Iraq may be best suited for this role, we will accept applications from firms outside of Iraq as well.
Price: The budget for this consultancy must be no greater than $12,000. Cost-effectiveness will be taken into consideration during the proposal evaluation.
The firm will support Five One Labs with the following outcomes:
A list of options of fund structures in different geographics (Iraqi, US, and offshore)
A detailed overview of the process of launching a fund in Iraq, including detailed price estimates
A detailed overview of the process of launching a fund outside of Iraq (US or offshore), including detailed price estimates and an overview of how that fund can then invest in Iraqi startups
A recommendation, based on the research of the firm, on the best legal structure for the fund
Advisory and consulting services on a roadmap and timeline for the creation of the fund.
We are looking for firms that meet the following requirements:
All lawyers working with Five One Labs directly are fluent in English, as well as Kurdish (a plus) and Arabic
Good knowledge and understanding of the Iraqi and KRG legal system
Good knowledge and understanding of venture capital (VC) funds, as well as their legal and management structures
Previous legal work focusing on investment into businesses/ startups in the Middle East and ideally Iraq
The firm will work closely with the Executive Director and Director of Operations of Five One Labs. The team will ensure that the selected firm has access to all relevant materials and support to succeed.
How to Apply:
If you are interested in this consultancy, please send the following materials to Five One Labs by February 26, 2020:
A proposal for the project, including your proposed timeline and deliverables
A budget for the proposed work
Your prior experience operating in Iraq and the Kurdistan Region of Iraq (KRI)
An overview of similar projects your firm has successfully completed
Proof that you are a legally-registered law firm
CVs of all lawyers that would be participating in the proposed project
Please send all materials to alice@fiveonelabs.org with the subject line “Legal Due Diligence: Proposal.”