Frequently Asked Questions (FAQs)

You have questions, we have answers. If you don't see a question you have answered please contact us directly and we would be happy help with any additional questions

 
 

What are Special Purpose Vehicles (SPVs)

Special Purposes Vehicles are a non-operating entity established for the purpose of pooling members' capital to acquire a single asset.

 
 

What type of investment vehicles does Syndicately Support?

The Syndicately platform supports Special Purpose Vehicles. We currently support primary equity, secondaries, SAFEs, convertible notes and plan to offer additional deal types in the future.

 
 

What is the structure of the SPV entity and how is the income dispersed?

All SPVs are pass through vehicles; any income made from carried interest or management fees will be passed on to the EIN/SSN of the manager. It is ultimately up to you/your fund manager to decide how you want that income to be passed on and establish the best management practices for your situation.

 
 

Who handles setting up and managing bank accounts?

Syndicately establishes a unique bank account for each SPV, your investors and your target investment through our system and fintech partner. Each individual person or group owns their own account entirely.

 
 

Can I use my own operating agreement?

Yes. We're aware you likely have drafted an operating agreement that works for your business and your investors. We can easily upload this operating agreement template into the Custom Portal of Syndicately where it can be adjusted for every SPV you may run.

Similarly, we have a standard operating agreement we've crafted that covers 95% of use cases, and is editable should you want to use ours.

 
 

What does customer support look like if I have questions while in the platform?

We offer live chat support directly in the platform Monday-Friday from 9-5 EST. Any messages received outside of that timeframe will be answered the following business day. We also offer support via email at help@syndicately.com.

 
 

What is an accredited investor - and do I need to be one when investing in an SPV?

An accredited investor is an individual, entity or trust that falls under one of the various qualifications outlined by the SEC under Regulation D. To invest in a SPV 506b offering, you need to be a accredited investor, qualified purchaser or you can have an SPV with up to 35 non-accredited investors.

 
 

Is Syndicately the Owner or posses control of the SPV?

Syndicately is neither an owner nor have any active control over the SPV entity. Syndicately establishes the SPV entity of behalf of our clients. The manager profile selcted during the SPV creation request process (an individual or entity) has operational control of the entity, which is also outlined in the Operating Agreement. Syndicately per our terms of service, is an authorized third party that can take actions on behlf of the manager and can support actions such as filling a certificate of good standing on behalf of the SPV entity each year.

 
 

Can you use this to shop interest before the SPV entity gets established?

All SPVs are pass through vehicles; any income made from carried interest or management fees will be passed on to the EIN/SSN of the manager. It is ultimately up to you to decide how you want that income to be passed on and establish the best management practices for your situation.

 
 

Does Syndicately support secondary transactions?

Yes, Syndicatley support secondary transactions. Secondary Stock Transaction (or Secondary) is when an investor buys shares in a company directly from an existing stockholder (typically a founder, employee or existing investor). The funds paid go to the seller, not to the company

 
 

Do you provide K1s for the SPV

Yes! For ten years after creation, Syndicately provides K1s for all investors involved in the SPV which is included in the fee you pay for the SPV.

 
 

How does Syndicatly make money?

It depends on what you'd like to do with us. Book a demo now to learn more

 

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