Atlanta, GA asked in Business Law for Georgia

Q: I have an investor trying to invest 3 million into my start up. Who pay the spv fees myself or the investor

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1 Lawyer Answer
James L. Arrasmith
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A: In Atlanta, Georgia, when dealing with an investment situation like yours, the question of who pays the Special Purpose Vehicle (SPV) fees can vary based on the agreement between you and the investor.

Typically, SPV fees are associated with the administrative and legal costs of setting up and managing the SPV. These fees can be negotiated as part of the investment terms. It's not uncommon for either the startup, the investor, or both to share these costs, depending on the agreement reached.

It’s important to have clear communication with your investor about all aspects of the investment, including who will be responsible for SPV fees. Ensuring that these details are explicitly mentioned in your investment agreement can prevent misunderstandings later on.

Before finalizing any agreement, consider seeking legal advice to ensure that the terms are fair and beneficial for your startup. A legal professional can help you navigate these negotiations and ensure that your interests are adequately protected.

Remember, in business transactions like these, clarity and mutual understanding are key. It’s crucial to have all terms laid out clearly in any agreement to avoid potential disputes or confusion in the future.

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