SPV Dictionary

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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 […]