Single Investment Entities
A single investment entity (also known as a syndicate, single purpose vehicle or single purpose entity) is an LLC that is formed to make a one-time investment in a specific company. Once the investment is made, the syndicate has no ongoing operations until the company liquidates.
A group of 10 investors decides to collectively invest $200,000 in Company XYZ’s offering which has a minimum investment of $25,000. A single investment entity allows those investors to combine their individual investments into an LLC, which then makes the investment on behalf of the group. This results in one entry on Company XYZ’s cap table, and allows each individual investor to participate below the $25,000 minimum.
Loon Creek Capital structures single investment entities to be investor friendly. We handle all of the work to set up the LLC, collect the funds, and close the investment. Funds are processed through an attorney’s trust account.
With our model, annual tax returns are not required until there is a taxable transaction such as a conversion or liquidation. This means no annual K-1s!
Ready to get started?
Click on the "Let's Go!" button to tell us about your syndicate