FAQs

What is an SPV?

SPV stands for Special Purpose Vehicle. SPVs are created as separate LLCs whereby LPs and outside investors can invest into individual Growth Factory startups outside of the existing fund.

 

Why should I invest in an SPV?

SPVs are carved out separately from the general fund to separate the investment risk. While investing in individual companies is risky, there is also opportunity for great returns.

 

What’s the minimum investment for the SPV?

The minimum investment for Growth Factory LPs is $10,000 per SPV. For external investors, not associated with the LP fund, the minimum investment is $25,000.

Investments can range from $10,000 - $200,000 per investor, and total funds will range from $500k to $1.5M in the first two years.

If you choose to participate in a deal, preparation and management fees will average $10,000 to be paid upfront, depending on total amount raised, which covers filing, due diligence, wire fees and fund management.

 

What is a Carry?

Carry is short for Carried interest, which is a share of the profits. Carry is paid to the fund lead for negotiating deal terms, performing due diligence, preparing startups for SPV opportunity, writing deal memos, hosting webinars, and advising for the SPV.  Standard Carry terms are 80%/20% for SPVs, however some terms may be adjusted based on previous investments in the Growth Factory LP fund.

 

How are Startups chosen for an SPV?

Growth Factory works closely with all startups to through the accelerator program. When a startup can prove they have the right team, timing, traction, TAM, and terms, they will be invited to participate in additional funding opportunities.

 

How will I know if there is an opportunity to invest?

The Growth Factory plans to present 2-3 SPVs to the LP group per quarter. This means there will be multiple opportunities to invest. It is important that investors understand the importance of diversification in SPV funds when making investment decisions.

 

How will the Growth Factory help my investment?

It is very important to note that most startups fail, and investors should only invest money than they can afford to lose. With that said, Growth Factory will only present companies with most traction, provide mentorship, organizational guidance, and fundraising roadmaps to put them in the best position for success.

 

How will I learn about opportunities to invest?

Deal memos will be sent via email to all who express interest in the SPV program.

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SUBMIT YOUR INTEREST HERE

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