One of the simpler methods for early-stage startups to secure funding is by utilizing a financial instrument known as a convertible security. A convertible security allows its holder (usually an investor) to transform it into a different asset, such as...

After you have created your entity and finalized the documents, you can invite investors to join the venture investment process. This step requires a lot of administrative expertise as well as compliance and legal considerations. Investor onboarding process Investor onboarding...

The best way to launch an investment company is to properly structure and manage the vehicles used to invest in private assets. This applies to private assets of any kind, including start-ups, real estate projects and secondary opportunities, farmland or...

Capital Raising Options with SPVs Equity Financing 1. Public offerings – issuing shares of stock to the general public through a stock exchange or over-the-counter market. This option is not typically used for SPVs as they are often set up for a...

Understanding the Importance of Blue Sky Filings for Special Purpose Vehicles (SPVs): Key Considerations and Compliance Best Practices Blue Sky filings are an important step in the formation and operation of a Special Purpose Vehicle (SPV). These filings refer to...

Public equity markets have a strongly defined structure to them. Buying a stock is in most cases a simple and straightforward process these days given the number of brokers and on-line platforms that follow standards and formats set by exchanges...

Once you have on boarded your investors, the SPV can fulfill its purpose by investing in the asset through the purchase agreement and wiring funds towards the target company. This is the main reason why you created your capital-raising SPV....

In the realm of startups and financing, entrepreneurs often utilize SPVs to secure investments from external investors. This approach helps reduce personal risks for founders.   Furthermore, SPVs can be beneficial for startups seeking an alternative financing structure compared to...

Securing funding as a startup founder involves extensive negotiations and the need to find common ground with potential investors. An essential aspect of this process is the use of a term sheet, a preliminary agreement that provides structure to discussions...

As a manager of a Special Purpose Vehicle (SPV), it is your responsibility to file taxes and distribute K-1 forms to the investors in the vehicle. Filing and K-1 distribution made easy Here are some steps you can take to...