When you create a new deal, you will need to tell us if your SPV is investing in a Private Company, Another SPV or Fund or a Secondary Transaction.
Your selection of the deal type impacts the language used in the operating agreement for the SPV and cannot be changed after the deal is approved. Here is a guide to help you determine which type of deal to select:
- Private Company (Private/Direct Offering) - Select this option if your SPV will be investing directly into the portfolio company. This could be done through a SAFE, preferred stock or a convertible note issued directly from the portfolio company. Payment for this deal type will be sent directly to the portfolio company when the SPV closes.
- Another SPV or Fund - Select this option if your SPV will be investing into another SPV or fund. This could be through Limited Liability Company interests or Limited Partnership interests. Note that you would need to fund 100% of the capital commitment to the underlying fund up front when your SPV closes.
- Secondary Transaction - Select this option if your SPV will be acquiring the investment from anyone other than the portfolio company. This could be an investment in preferred stock, a SAFE or another security type that is being acquired from one or more parties other than the portfolio company itself.