SPV Dictionary

This Special Purpose Vehicle (SPV) Dictionary serves as a comprehensive resource for understanding the terminology associated with these financial instruments. SPVs, by their nature, can involve a complex interplay of legal, accounting, banking, tax, compliance, and administrative considerations. This dictionary aims to provide clear and concise definitions for the key terms encountered in the context of SPVs.

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Valuation

Valuation is the process of determining the current worth of an asset or a company. There are many techniques used to determine value. The market

Valuation Cap

A “valuation cap” entitles note holders to convert the outstanding balance on the note into shares of stock at the lower of (i) the valuation

VC (Venture Capital or Venture Capitalist)

Venture capital is financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential. For startups without access

VC Fund (Venture Capital Fund)

An investment fund that manages the money of investors who seek private equity interest in startup and small-to medium-sized enterprises with strong growth potential. Investment

Venture Capital Fund (ERA)

For ERA (and other) regulatory purposes, the SEC has defined a Venture Capital Fund as: A private fund that meets the following qualifications: Pursues a

Venture Capital Fund Exemption

The venture capital fund adviser exemption allows advisers to venture capital funds to avoid certain regulations under the Investment Advisers Act. A venture capital fund

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