# SPV 101

### 1. What Is an SPV?

A **Special Purpose Vehicle (SPV)** is a one‑off legal entity—usually an LLC—created *solely* to hold a single investment.\
Think of it as a **“deal container.”** Everything that goes into the container (cash, startup shares) and everything that comes out of it (proceeds at IPO) is isolated from other deals and from D‑Day’s operating company.

| Why It Matters                          | Plain‑English Benefit                                                                                                     |
| --------------------------------------- | ------------------------------------------------------------------------------------------------------------------------- |
| **Simple cap table for founders**       | The SPV appears as *one* shareholder instead of hundreds of small investors.                                              |
| **Transparent ownership for investors** | Your equity stake is crystal‑clear: you own LP units in the SPV, and the SPV owns shares in the startup—no hidden layers. |
| **Regulatory fit**                      | U.S. securities rules are designed around SPVs; audits, K‑1s, blue‑sky filings all have a home.                           |

At D‑Day we form a **Series‑LLC** in Delaware. The master LLC (the “umbrella”) spawns a new internal *Series* for every startup—effectively creating a fresh SPV each time without a full reincorporation.

***

### 2. Investor Journey — Step by Step

Below is the end‑to‑end path, separated into *non‑U.S. investors* (Reg S) and *U.S. angel‐club investors* (Reg D §506 b “white‑glove”) so you can see exactly what happens in either case.

#### A. All Investors — Preliminaries

1. **Read the Deal Memo** in GitBook → understand thesis, terms, and soft / hard caps.
2. **Wallet Setup** – Any Solana‑compatible wallet (e.g., Phantom, Backpack) will work. This wallet will later receive your security tokens.

***

#### B. Non‑U.S. Investors (Reg S)

| Stage                          | What You Do                                                                             | What Happens in the Background                                                                               |
| ------------------------------ | --------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------ |
| **1. Acquire Utility Tokens**  | Buy on a Solana DEX (Raydium, Meteora).                                                 | Price discovery begins; on‑chain volume gauges market demand.                                                |
| **2. Burn for Access**         | Use the Burn dApp to destroy a preset amount of tokens → get a one‑time “burn receipt.” | Smart contract records wallet as *eligible* for equity round.                                                |
| **3. KYC & Sign Docs**         | Upload passport, pass sanctions check, e‑sign Subscription Agreement.                   | Compliance oracle marks wallet *KYC‑passed*.                                                                 |
| **4. Fund the SPV**            | Send USDC to the offshore escrow wallet.                                                | Funds batched; escrow remits to SPV bank acct.                                                               |
| **5. Receive Security Tokens** | Token‑2022 LP units appear in your wallet—1 token = 1 LP unit.                          | Mint transaction logged on‑chain; transfer lock timer starts (12 mo. into U.S.).                             |
| **6. Monitor & Wait**          | Track startup KPIs in the D‑Day dashboard; tokens stay non‑transferable.                | Quarterly updates; audited financials uploaded annually.                                                     |
| **7. Exit Event**              | IPO or SPV sale triggers cash/stocks flowing into the SPV.                              | Smart contract burns your security tokens and streams your share of proceeds (USDC) straight to your wallet. |

***

#### C. U.S. Angel‑Club Investors (Reg D §506 b)

| Stage                       | Club’s Role                                                                   | D‑Day “White‑Glove” Actions                                               |
| --------------------------- | ----------------------------------------------------------------------------- | ------------------------------------------------------------------------- |
| **1. Private Invitation**   | Club receives deal deck via existing relationship (no public marketing).      | —                                                                         |
| **2. Accreditation Letter** | Club collects CPA/attorney letters for each participating member.             | —                                                                         |
| **3. Subscription Packet**  | Club signs master Subscription Agreement on behalf of members.                | Validate club accreditation; create investor ledger.                      |
| **4. Funding**              | Club wires a single USDC tranche to the broker‑dealer escrow wallet.          | Burn required utility tokens *on club’s behalf* to satisfy “ticket” rule. |
| **5. Token Delivery**       | Club designates a Solana wallet (custodian or internal multisig).             | Mint & transfer the aggregate LP security tokens to that wallet.          |
| **6. Reporting**            | Club receives quarterly statements + K‑1 equivalents; can forward to members. | File Form D within 15 days; maintain blue‑sky compliance.                 |
| **7. Exit Distribution**    | Club’s wallet auto‑receives USDC / public shares; club disburses internally.  | Smart contract burns security tokens; records on‑chain proof of payout.   |

###

***

#### TL;DR

An SPV is your **single‑deal holding tank**. You invest into it once, receive a security token that can’t wander off until exit, and—when the startup wins—you get paid out automatically on‑chain. Everything else (token burns, legal filings, KYC, cap‑table headaches) is handled behind the scenes so you can focus on tracking the company, not chasing paperwork.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://docs.d-day.ai/spv-101.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.