Lead (Lead Investor)
Is an investor who will put up a substantial amount of the total investment – often around 20% – usually early in the fund raising process. Leading an investment round can result in improved economic terms.
Ledger
A listing of investors at a specific point in time invested in an SPV. The ledger should include the investor’s name, amount invested, date of investment, tax identification information and contact information. Not to be confused with a general ledger which is a ledger of various asset, liabilities, equity, income and expense accounts which are […]
Limited Partner (LP)
A non-managing owner of a Limited Partnership structure, whose liability is limited to the amount of its investment. A limited partner is the technical name for investors or members of a LP or limited partnership structure. LP is also a general term (umbrella term) for investors in an investment fund or structured vehicle. SPV investors […]
Limited Partnership (LP)
See Regular LLC/LP
Liquidation Preferences
Liquidation preference establishes that certain investors receive their investment money back first before other investors and/or company owners in the event the company is sold, has a public offering, pays dividends, or has another liquidation (payout) event.
Liquidity event
A distribution event that results from either the sale of an investment portfolio company or some of its assets or another type of event which results in cash, equity or tokens (cryptocurrency) being distributed to the SPV. Subsequent to an SPV receiving the cash, equity or tokens, oftentimes, the SPV Organizer will distribute to the […]
LLC (limited liability company)
See Master LLC, Regular LLC/LP, and Series LLC
LLC-12
California Statement of Information form required for every California and registered foreign LLC within 90 days of registration and every two years thereafter.