Fund Structure
SPV
Last updated
Quick Answer
Special Purpose Vehicle — a single-purpose investment entity that allows a group of investors to co-invest in a specific deal through a unified cap table entry.
An SPV (Special Purpose Vehicle) is a legal entity created to hold a single investment. Instead of 20 angel investors each appearing individually on a startup's cap table, they pool capital into an SPV, which appears as a single cap table line item. SPVs are commonly used by: angel syndicates pooling capital for a specific deal; VC funds that want to co-invest beyond their fund's normal allocation; and secondary buyers purchasing specific shares. AngelList has made SPVs widely accessible, democratizing co-investment in top deals. From the startup's perspective, SPVs are cleaner than 20 individual angels — one point of contact, one voting entity. From the investor perspective, SPVs allow participation in deals above normal check size without changing fund strategy.
Related Concepts
Further Reading
AngelList vs Carta vs Pulley vs Archstone: Which Platform Should You Use in 2026?
A 2026 head-to-head comparison of AngelList, Carta, Pulley, and Archstone across pricing, cap table management, fund administration, LP portals, deal pipeline, and AI tools — so you can choose the right platform for your fund.
LP Data Room Best Practices: What to Include When Raising Your Fund
A practical guide for emerging managers on exactly what to include in an LP data room, how to structure it, which platforms to use, and the mistakes that quietly kill a fundraise.
The Tax Benefits of Angel Investing: QSBS Explained
How Section 1202 QSBS can exclude up to $10 million in capital gains from angel investments — the requirements, holding periods, and how this tax benefit dramatically changes the return math.
Angel Syndicates Explained: How They Work and When to Join
A complete guide to angel syndicates and SPVs — how they're structured, what carry and fees you'll pay, the pros and cons vs. direct investing, and how to evaluate syndicate leads.
Key Person Clause: What It Is and How to Structure It
A key person clause protects LPs when essential fund managers leave. Here's how to structure it, what triggers a key person event, and how to negotiate it effectively.
Anchor LP Strategy: How to Close Your First Institutional Commitment
Closing your first institutional LP commitment is the hardest part of any emerging manager's fundraise. Here's a data-backed strategy for landing an anchor LP.
Comparisons
Careers That Use This Term
This concept is especially relevant for these venture capital roles:
Frequently Asked Questions
What is SPV in venture capital?
An SPV (Special Purpose Vehicle) is a legal entity created to hold a single investment. Instead of 20 angel investors each appearing individually on a startup's cap table, they pool capital into an SPV, which appears as a single cap table line item.
Why is SPV important for startups?
Understanding SPV is critical for founders navigating the fundraising process. It directly impacts deal terms, valuation, and the relationship between founders and investors.
What category does SPV fall under in VC?
SPV falls under the fund-structure category in venture capital. This area covers concepts related to how venture capital funds are organized, managed, and governed.
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