Angel Investors + SPVs = VC Magnet: The Secret Weapon for Clean Cap Tables
In the dynamic landscape of startup funding, founders often find themselves navigating the delicate balance between raising capital from angel investors while maintaining a clean and attractive cap table for future venture capital (VC) rounds. Special Purpose Vehicles (SPVs) present an innovative solution to this challenge, offering founders the opportunity to aggregate small checks from […]
How can Angel Investors use SPVs to make Venture Capital investments?
Angel investors can use Special Purpose Vehicles (SPVs) to make Venture Capital investments by pooling capital from multiple investors and creating a separate legal entity to make the investment. Here’s how it works: 1. Pooling Capital The angel investor can bring together a group of investors who are interested in investing in a particular venture. […]
6 reasons why a VC fund manager should use SPVs
When it comes to investing in early-stage startups, a venture capital fund manager (VCFM) typically pools their investor money into a single entity, known as a ‘fund’. However, there are times when a VCFM may opt to use a special purpose vehicle (SPV), either instead of or in addition to a fund. In this article, […]
Why startup founders should consider setting up a Founder SPV?
Starting a business is a challenging task. Founders have to grapple with various issues such as product development, customer acquisition, and funding. One of the most pressing issues for most founders is managing their cap table. As a company grows and raises funding from multiple investors, keeping track of equity ownership becomes more complicated. To […]
