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Why Are SPVs Cool Again?

  • Special Purpose Vehicles (SPVs) are legal entities formed for a particular investment, commonly used in venture capital to aggregate funds from multiple investors for one company.
  • SPVs provide smaller-scale investors with the opportunity to invest in startups with smaller check sizes and gain access to exclusive investment opportunities.
  • Investment through SPVs may have tax benefits, but it can also have tax implications and risks if not structured properly.
  • There are various platforms available for SPV investments, each with its own specialty and drawbacks, including AngelList, Sydecar, Carta, Allocations, Trident Trust, and JTC.

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