What Is an SPV?
SPVs (Special Purpose Vehicles) are the companies that are used to meet specific objectives, such as grouping a lot of small investors under one organization and investing in a startup as one entity. Make sure you understand what an SPV is and how it works.
As a company that receives such an investment through an SPV, you may want to provide investors with information on the percentage of ownership each of them has. This is possible to do using Capboard and its digital cap table management tool.
To add an SPV on Capboard, you should have created the cap table of your company on Capboard. You can do it here.
After you have added your cap table data with all the transactions that happened before the SPV investment, you can add it following the next steps.
How to Add an SPV to Your Cap Table?
Here is the step-by-step guide:
Go to Ownership > Transactions > Add Transaction > Financing Round. Then...
1. Make sure your pre-money valuation and the price per share of your company are correct prior to the investment through an SPV.
2. If more than one investor invests through an SPV, you will have to record each investment in its corresponding line.
3. Add the name of the SPV in the Stakeholder Name field. The Beneficiary Name should be the actual name of the individual investor. Then, specify the amount invested, and let us take care of the calculations.
4. If the investor paid a different price from the one specified in the “Price per share” field, you can use the Discount (%) field and specify the discount rate.
5. Repeat steps 3 and 4 for each investor who invests through the SPV in your company.
6. Make sure to double-check the data before saving. It involves all the key fields: pre-money valuation, date, share class, price per share, names, investment amount, number of shares and the discount rate.
7. ;Optional: add corresponding documents and internal notes, and invite stakeholders (Capboard will send invitation emails automatically to the specified emails you should have written)
8. Click the Save button to ensure the transactions are recorded and appear in the Transactions section.
9. To check the impact of such an investment on your cap table:
Go to Ownership > Cap table.
On the visual representation, you can see the equity ownership.
If you scroll down and click on the drop-down button next to the Investors/SPV section on the cap table, you will see the ownerships of each investor as well as the total ownership of the SPV.