Now Goldman intends to set up a special purpose vehicle (SPV) so its high-net-worth clients can skirt IPO laws and get their money in before Facebook goes public.
Securitization involves pooling assets or rights to cash flows, bundling together those assets with similar characteristics, and creating a financial instrument that can be traded (often through a special purpose vehicle, or SPV).
The general consensus of the group was that an SPV might be good for some companies (hyper-growth companies with many individual crowdfund investors), but not for others (Main Street businesses with no clear exit strategy).