A draft investment agreement or term sheet that includes the legal name of the portfolio company is required in order to submit a new deal for review.
Before you submit a new deal for Sydecar review, you will need to upload an investment document or term sheet. This document should include the legal name of the portfolio company you are investing in, the jurisdiction of the portfolio company, as well as any other terms that are provided in Sydecar to SPV investors. The investor name and the investment amount don't need to be finalized in this document. This document can be a draft investment agreement, such as a SAFE, a term sheet from the company, or another document that includes the information noted above.
We require this documentation for a few reasons:
- The legal name of the portfolio company will be included in the SPV's operating agreement at launch and changing it after the fact would require fairly heavy operational work and/or amendments to legal agreements.
- We use different template operating agreements for our SPVs when they invest directly into a private company vs. an underlying fund vs. a secondary transaction. It is helpful to see the terms of the deal or a draft agreement to ensure that the SPV is set up correctly.
- There are certain jurisdictions that we do not support and therefore it is helpful to verify this with a draft agreement up front to avoid winding down the SPV down the road.
- There are certain investment structures that Sydecar cannot support and reviewing a draft investment agreement will help us determine if we're a good fit.