Glossary

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A

Accreditation

The process of confirming that an investor meets certain income or net worth thresholds required by securities regulations. Accredited investors are eligible to participate in private investments like those on Play Money. The platform guides you through confirming your accreditation status as part of the investment process.

ACH (Automated Clearing House)

An electronic bank-to-bank payment system used to transfer money from your linked bank account to fund investments. ACH is the most common payment method on Play Money — the platform automatically pulls funds from your bank after you confirm an investment. See ACH Transfers.

C

Capital Call

A request for investors to send the money they committed to an investment. On Play Money, capital calls are handled automatically — when you confirm an investment and the SPV is ready, payment collection begins without a separate request.

Carry (Carried Interest)

The fund manager's 20% share of any investment profits. Carry only applies if the investment generates a return — if there are no profits, no carry is collected. See Understanding Fees.

Carry Credit

A credit that reduces or eliminates the carry share on your investments, earned through referrals or granted by the platform. A 0% carry credit means no carry is taken on that investment. See Earning Carry Credits.

Community

A group of investors on Play Money who share interests, networks, or investment goals. Communities may have their own exclusive deals, member lists, and investment activity. See Communities.

Custodian

A financial institution that holds and manages assets on behalf of an investor. Custodians are commonly used with self-directed IRAs — your custodian sends investment funds on your behalf. See Funding Sources.

D

DAF (Donor-Advised Fund)

A charitable investment account used to make investments or donations, managed by a sponsoring organization. If you invest through a DAF, your sponsor handles the payment process. See Investment Profiles.

Deal

An investment opportunity in a startup company, presented on Play Money. Each deal has its own page with information about the company, investment terms, and the founding team. Deals can be open, require access, or be closed. See Browsing Deals.

F

Funding Close

The event when an SPV finalizes all investments and officially deploys the pooled money to the company. After a funding close is settled, your subscription agreement becomes available and the company receives the funds. Your investment status moves to "Funded."

Funding Source

The method you use to send money for an investment. Play Money supports three funding sources: ACH (bank transfer), wire transfer, and external funding (for IRA and DAF investments). See Funding Sources.

I

Identity Verification

The process of confirming your identity through personal information and documentation, required by law before you can invest. Also known as KYC (Know Your Customer). See Identity Verification.

Investment Profile

A record representing the legal entity making an investment. You might invest as an individual, or through an LLC, corporation, trust, IRA, or DAF. See Investment Profiles.

IRA (Individual Retirement Account)

A self-directed retirement account that allows you to invest in alternative assets like startups through a custodian. See Investment Profiles.

K

K-1 (Schedule K-1)

A tax form reporting your share of income, deductions, and credits from an SPV investment. A K-1 is issued for the year the funding round closes. In subsequent years, a K-1 is only issued if a taxable event occurs for that investment. Typically available by March 15. Visit your Tax Center to see which investments have taxable events and whether to expect a K-1. See Tax Forms and K-1s.

KYC (Know Your Customer)

Regulatory requirements for verifying investor identity before they can participate in investments. On Play Money, KYC is handled through the identity verification process. See Identity Verification.

L

LLC (Limited Liability Company)

A business structure that can be used as an investment entity. Many angel investors create an LLC specifically for making investments. See Investment Profiles.

P

Platform Fee

A one-time 10% fee on the investment amount charged by Play Money for facilitating the investment. Covers SPV setup, payment processing, and legal documentation. See Understanding Fees.

Plaid

A third-party service used to securely link your bank account to Play Money without sharing your bank login credentials. See Linking a Bank Account.

R

Referral

The act of inviting someone to join Play Money using your unique referral link. When they sign up and invest, both of you earn carry credits. See Referral Program.

S

SPV (Special Purpose Vehicle)

A legal entity created to pool money from multiple investors to make a single investment in a company. When you invest through Play Money, you invest through an SPV. See Key Concepts.

Subscription Agreement

The legal contract between you and the SPV that formalizes your investment terms. You accept it electronically during the investment flow. See Subscription Agreements.

T

Transfer

A movement of money between your bank account and the SPV, representing your investment payment. See How Payments Work.

V

Verification

See Identity Verification. The process of confirming your identity to comply with securities regulations.

W

Wire Transfer

A method of sending money directly from your bank to the SPV's bank account using specific routing and account details. See Wire Transfers.