TLDR:
- Danielle Shoots, of the DEMI Fund, is suing the city of Denver for not forwarding tax dollars as contracted.
- The DEMI Fund invested Denver’s tax dollars in 10 businesses in its first year, including Ad Fontes and PetroFunders.
Maia Luem’s article details the lawsuit filed by Danielle Shoots of the DEMI Fund against the city of Denver for failing to transfer tax dollars as contracted. The city had set aside $15 million of marijuana tax revenue to support minority and women-owned businesses, with Shoots managing and investing the funds. However, less than two years into the partnership, the relationship has deteriorated, leading to the lawsuit.
The DEMI Fund has invested in 10 businesses in its first year, including Ad Fontes and PetroFunders, with the goal of providing ecosystem support to other startups as well. Shoots has raised concerns about transparency and accountability in the management of these funds, pointing to discrepancies in disbursements and access to information. The lawsuit highlights the challenges faced by Shoots in executing the contract, citing lack of knowledge about venture capital within the city administration.
