SPV for 6-9 months of finance raising?

by a searcher from Carleton College

2 years ago

I am an independent, self-funded searcher targeting an exciting business in a niche tech industry.  A respected adviser in the industry told me, in passing, that it is common in the industry to form a special purpose vehicle while raising financing for six to nine months.  I  think he was recommending  proposing such a structure in the LOI.  I am trying to imagine how this would work in detail.  Is there anyone I could talk to who is familiar  with this type of deal?

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3 comments

investor from United States Military Academy

Happy to give you some thoughts on structures as well, Anne.

2 years ago | like reply | 1 like

professional from Dartmouth College

Hi Anne, would need to know more about the purpose of the SPV. A lot of searchers form an LLC for capital-raising purposes, or just so that they aren't entering into an LOI on their individual behalf, which could create personal liability exposure. Most lenders for individual searchers will be looking at your personal finances regardless. Not a lot of down side to it other than some costs associated with creating the entity. Happy to discuss directly.

2 years ago | like reply | 0 likes

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