Understanding Common Carry Percentage
Special Purpose Vehicle (SPV) carried interest refers to the share of profits that an SPV manager receives as a reward for their role in managing and investing the funds of the SPV. The purpose of this blog post is to...
Angel Investing: Understanding the Process
Understanding the Basics of Angel Investing: What it is and Why it Matters Definition of angel investing Angel investing refers to the practice of providing capital and mentorship to early-stage, high-growth companies in exchange for an ownership stake. Importance of...
How To Write The Perfect One Pager Investment One-Pager
Encouraging people to invest in your startup often involves creating various documents and delivering presentations. You’ll need an impressive pitch deck along with a compelling verbal pitch. Key information about your company, such as your current user base, projected growth,...
Making Your Deal Stand Out to Investors
Capture investors’ attention with your business’s most impressive achievements and key statistics. Each point should leave them impressed. Impressive Growth: Showcase your growth rate prominently. For instance, state, “Achieved 3x revenue growth from 2018 to 2019, and we’re on...
506(b) SPV Capital Raising and Common Types of Convertible Debt
Convertible debt is a type of financing that can be converted into equity at a later date, usually at a pre-determined conversion rate. It allows companies to raise capital while giving investors the option to convert their debt into equity...
Capital Account Statement Preparation for Your SPV
The first step in closing the transaction is to prepare the individual capital account statement for each investor in an SPV. Once you have completed the critical step of completing the investment contract by signing the purchase agreement. There are...
Comparing Pre-Money SAFE and Post-Money SAFE
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...
Opportunity Alert: Manager Invites Investors to Participate in SPV
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...
Anatomy of an SPV
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...