SPVs and SPACs — A Straightforward Guide For Entrepreneurs

Have an investor wanting to do a SPV? Wondering what is all this talk of SPACs? This post is focused on entrepreneurs looking to learn more. 1) Special Purpose Vehicle (SPV) — Also sometimes called Special Purpose Entity and basically a way to isolate financial risk. A SPV could include investment from any combination of individuals and companies, and has a separate legal status from all of them. For example if an investor in the SPV goes bankrupt the SPV still maintains its obligations. If a SPV includes financing from a government then same deal, the obligations are maintained even…...