K-1
A tax document generated by Form 1065, issued by a partnership (LLC or LP) to report the income, losses, and dividends allocated to each partner. The recipient is required to include the information from the K-1 on their personal income tax return. SPVs, as partnerships, are required to file Form 1065 with the IRS annually […]
KISS
A KISS is a financial instrument between a company and an investor, where the investor provides capital in exchange for the right to purchase shares in a future equity financing round. It is a hybrid security, combining features of both debt and equity. While similar to a SAFE (Simple Agreement for Future Equity), a KISS […]
KYC (Know Your Customer)
A set of policies and procedures implemented by SPV organizers and financial institutions to verify the identity of investors. KYC requires the collection and maintenance of essential information about each investor, including the identification of individuals with authority to act on the investor’s behalf. SPV organizers must identify owners with 25% or more beneficial ownership […]