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AOTSPV_Webimages_Administration Outline-39In the happy contingency of value creation, the SPV should prepare and distribute financials to participating investors.

As with the preparation of tax returns and the distribution of K1s to participating investors in your entity, preparing financials is a possible step for your capital-raising SPV. The requirement for financial statements to be prepared and shared with your investors is primarily contingent on one key factor—did it generate cash flow? Preparing financials requires fund Accounting expertise and the distribution of financials requires SPV Administration expertise.

The most significant of these factors is the asset into which the SPV has invested. In the desirable circumstance that this asset generates frequent cash flow, then you should produce financial statements. If the asset does not produce cash flow, as is typically the case when you are investing into a startup company, then financial statements are not necessary. You can consider them as optional. For example, if you suspect that your startup might generate cash flows earlier than expected, you might choose to prepare financials before the money starts to flow.

This is where the expertise of Assure comes into play. We have deep experience working with entrepreneurial venture financing, and we will put that perspective and know-how to work for the benefit of your entity. This enables you to focus on your mission and expertise, save time and money, and make a greater impact, sooner.  

AOTSPV_Webimages_Step13 Molecule

Now that you have finished your taxes, receipts and financials, you are ready to move on to STEP 14: POST-CLOSE ACTIVITIES.