Cancelling an SPV

Cancelling an SPV moves it to the Cancelled state. This is used when a deal is abandoned, the investment opportunity falls through, or the SPV is no longer needed. Cancellation has significant downstream effects on all related investments and funding closes.

What Happens When You Cancel an SPV

When an admin cancels an SPV:

1. SPV status updates to Cancelled.

2. Active funding closes are cancelled -- any funding close in an Active state is automatically moved to Cancelled. Investments that were part of those funding closes are unassigned.

3. Impact on investments -- existing investments in the SPV will need to be handled. Committed investments that haven't been funded may be cancelled. Funded investments may need refunds, which are handled separately through the admin panel.

4. No new actions -- the SPV is frozen. No new investments, payments, or funding closes can be created.

When to Cancel an SPV

Common reasons for cancellation:

• Deal fell through -- the startup declined the investment or the deal didn't materialize
• Restructuring -- the deal is being restructured with a new SPV under different terms
• Compliance issues -- the deal cannot proceed for regulatory reasons
• Insufficient interest -- not enough investor demand to justify the SPV

What Admins Should Know

• Cancellation is permanent -- a cancelled SPV cannot be reopened or moved back to any other state.
• Funded investors need refunds -- if investors have already sent money, you'll need to initiate refunds separately. Cancelling the SPV does not automatically refund payments. See Cancelling & Refunding.
• Draft SPVs can be cancelled too -- you don't have to open an SPV before cancelling it.
• Review all investments first -- before cancelling, check the SPV's investment list to understand the impact. Are there funded investments that need refunding? Are there pending payments that should be cancelled?
• Communicate with investors -- cancellation is a significant event. Make sure investors are informed about what's happening with their commitments.