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Special Purpose Vehicle

A Special Purpose Vehicle (SPV) is a separate legal entity that is created by an organization for a specific purpose. The SPV is a separate company with its own assets and liabilities, as well as its own legal status. The SPV may be created to isolate financial risk. As it is a separate legal entity, if the parent company goes bankrupt, the special purpose vehicle is not affected.

Related Terms: SAFE, IPO, Note

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