A Special Purpose Vehicle (SPV)—or Special Purpose Entity (SPE)—is a distinct, legally separate entity created by a parent company to fulfill a narrow, specific objective, such as enabling structured financing, or holding specific assets. In the case of Patagon, it's used for the latter. SPVs are a common structure employed by VCs and private investors as they offer a flexible and efficient way to execute deals while isolating financial risk. Broader investments remain protected as each entity pools liability, safeguarding Patagon's assets even if a venture fails. This enables our wide array of offerings while ensuring investors only gain exposure to the assets they want, from each according to their capital, to each according to their risk tolerance.

Put simply, active deals are listings that you can actively subscribe to, and inactive deals are deals you can bid on/express interest in, but cannot fill out documents for. Both are important features in allowing clients to shape what deals are offered on the platform by indicating which assets should be targeted. If enough bids for an inactive deal are submitted, we source stock for it. Patagon has a handful of different classifications for Deals: Active, Inactive, Active at …, or Closed. Some deals require larger ticket sizes to be competitive in the market, this is where the “Active at ….” classification indicates the minimum size for these deals to close (e.g.: a deal where the minimum ticket is 10 million dollars will be “Active at 10,000,000” and so on. If the SPV does not reach the minimum ticket, the deposit is refunded. Finally, “closed” deals are listings that are not taking any new subscribers.

No. Patagon is not a registered broker dealer, and does not sell securities, only interest in SPVs. What we offer to clients is interest in asset-backed SPVs, but we do not sell securities— meaning a Patagon client invested in RandomCompany Inc. SPV does not own shares in that company, they own a percentage of the SPV which itself holds the shares. Though our vehicles do purchase securities, we do not directly sell securities to our clients. This being said, clients can elect to receive shares in-Kind if a liquidity event were to transpire, such as an IPO or acquisition of the company / SPV.

No, submitting a Bid is not a legally binding commitment, though bids and asks must reflect genuine intent. Bids and asks are understood as a mechanism for Patagon clients to guide investment decision making or a tool for fee negotiation, not a contract. Clients should be ready to follow through on the terms they submit and are expected to conduct their own due diligence beforehand. That said, clients can always update bids and asks as circumstances evolve. Repeated failure to follow through on bids will impact their future consideration.

Patagon’s minimum ticket amount is $200,000 as the SEC instructs that this ticket size efficiently verifies accredited investor status, easing the compliance burden on clients.

Yes, though this must be specifically requested and DTC transfer instructions must be provided ahead of time, as it is not the default.

Yes, we take investments from entities, 401ks or other retirement plans, IRAs, etc— provided they pass KYC. In the case of IRAs or accounts custodied by third parties (Angel List, Fidelity, etc), we insist subscriptions and transfers be initiated with plenty of time to fulfill the approval process for new investments, as each custodian may have unique timely compliance procedures.

Generally, SPVs have a timeline of one to two years—though this can vary depending on the circumstances of a specific investment. Factors such as the target company's trajectory toward a liquidity event (e.g., an IPO or acquisition) or vesting schedule may shorten or extend this window.

Clients looking to combine capital with another investor to reach the $200,000 minimum may do so, though this typically requires setting up a dedicated legal entity—an LLC or LP, for example—to serve as the investing party. Keep in mind that forming such an entity can come with its own legal and administrative costs. Individual investors are still subject to standard transaction minimums, and we recommend speaking with legal counsel before going this route.

The outcome depends on the specific circumstances of the event. In the case of an acquisition, your interest in the SPV may be bought out or converted into shares of the acquiring company, with the potential for profit or loss depending on the terms. If the company remains private, your position may continue to hold value—though liquidity options will be limited until a future exit event, such as an IPO or subsequent acquisition. In the event of bankruptcy, there is a significant risk that your investment could lose most or all of its value, particularly as it may become difficult to find buyers for distressed assets. Making it difficult to liquidate the SPV. As with all private growth equity, it's important to weigh these risks carefully and conduct thorough due diligence before committing capital.

Yes. Patagon's wishlist feature allows you to input the ticket size you'd be willing to commit alongside your target valuation—functioning as a tool for guiding investment decisions and fee negotiation. Simply navigate to the inactive market, scroll to the "How Can I Invest?" section, and submit your terms. The listing will be saved in your wishlist and you will be notified if it becomes active. This helps both you and Patagon align on pricing before any commitment is made.