SPVs, Funding Entities, Oh my!

relax

 

“We LOVE managing all of the SPEs/Funding Entities we set-up!” – said no one ever

Structuring individual investors into a funding entity to make an investment has some fantastic benefits for everyone involved in the transaction. For example, since entities commonly act as one owner and vote, SPEs simplify the cap table for future rounds and streamline company decision making processes.

However, managing these entities over time presents a number of challenges.

So, we at Venture360 have taken a very complex part of investing and made it very simple.

Here’s how…

Meet Bob.

singleperson

Bob is an Angel Investor, who is also an LP in a fund, and sometimes does deals with his friends. So, your average private investor.

angelinvestor                     VC                    friendsoffriends

This is what happens when Bob tries to figure out where his money has gone, how it is performing and what his accountant needs to know for taxes.

confused    createscharttriestoexplainchart

Which leads to this…

frustrated

Then Bob stops making more investments because ain’t no one got time for that.

Now, what if the angel group, venture fund and family office Bob invested with used Venture360?

Well, Bob’s experience would look like this…

Bob could set up his investor profile with entities he typically likes to invest through then use those entities to make commitments to new deals.

funding entity overview

 

When his angel group closes a deal using a funding entity, the administrator can quickly set up the entity and move the participating investors over. This is all done seamlessly as part of the closing experience.

moving investors to entity

 

Now, when Bob logs into his Venture360 profile to view his portfolio information, he can quickly sort how he would like to view that investment information (by fund, funding entity or personal).

investor portfolio entities

 

This is Bob using Venture360.

relax

If you would like to explore more of Venture360’s amazing features, book a demo with our team here.

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