Opening an SPV

Opening an SPV moves it from Draft to Pending (open) status. This is the moment the SPV becomes active and can start accepting investor commitments. Several important things happen automatically when an SPV is opened.

What Happens When You Open an SPV

When an admin clicks the Open action, the system:

1. Provisions a Virtual Account -- a dedicated bank account is created with the payment provider. This account will have its own routing number and account number where investor funds are deposited. See Virtual Accounts.

2. Submits KYB verification -- the SPV's entity information is submitted for Know Your Business (KYB) verification with the compliance provider. This runs in parallel with fundraising. See KYB Verification.

3. Evaluates existing investments -- if any investors have already committed to the deal (committed investments made before the SPV was officially opened), the system re-evaluates each one to determine if payment can now be dispatched. This means investments that were waiting for the SPV to open may automatically progress.

4. Updates the SPV status to Pending (open).

Admin Dialog Options

When opening an SPV, admins see a confirmation dialog with the following options:

• Provision Virtual Account -- create the dedicated bank account (on by default)
• Submit KYB -- submit entity verification (on by default)
• Evaluate Existing Investments -- process any waiting investments (on by default)

Admins can uncheck options if needed (for example, if KYB was already submitted separately).

KYB Field Locking

Once KYB verification has been submitted for an SPV, the following fields are locked in the admin panel and cannot be edited:

• Legal entity name -- changing the entity name after KYB submission would invalidate the verification. Contact engineering if a correction is absolutely necessary.
• EIN -- changing the EIN after submission can invalidate the verification record.

These fields display a lock indicator with an explanation when KYB has been submitted.

What to Check Before Opening

• Deal content is complete -- since investors will see the deal once they can invest, make sure all content (pitch deck, videos, founder profiles) is ready.
• SPV details are correct -- the SPV name, fee structure, and minimum investment are finalized. Note that the legal entity name and EIN will be locked once KYB is submitted.
• Deal is published -- the deal should be published (see Publishing & Sharing) so investors can actually find it.

What Admins Should Know

• Opening is reversible only through cancellation -- you cannot move an SPV back to draft. If something is wrong, the SPV would need to be cancelled.
• Virtual account creation is automatic -- you don't need to set up banking details manually. The system handles it through the payment provider.
• Investments can flow immediately -- once the SPV is open and the deal is published, investors can commit. If they have verified identities and connected bank accounts, payments may initiate automatically.
• The normal open requires an operating account -- the Open SPV action is only available when KYB has been approved and an operating virtual account has been provisioned. If you see "Emergency Open (Last Resort)" instead of "Open SPV," it means the operating account is not yet ready. In most cases, the right action is to wait for KYB approval, not to emergency open.

Emergency Opening (Last Resort)

In rare, exceptional circumstances where KYB verification cannot complete in time and the deal has a hard deadline that cannot be moved, the Emergency Open action exists as a last resort. It creates a temporary suspense account under the platform's master LLC and moves the SPV to Pending.

Emergency open is not a convenience feature. It results in split funding accounts (investor money lands in the master LLC, not the SPV entity), requires a manual sweep once KYB clears, and creates additional accounting and compliance complexity. Always prefer waiting for normal KYB approval.

See Emergency Opening an SPV for full details on when this is justified and the operational consequences.