Glossary · Fundraising instruments
Special purpose vehicle (SPV)
A separate legal entity set up for one job — hold one investment, run a syndicate, or isolate risk. Angels and funds sometimes invest through SPVs to pool checks into a single line on your cap table.
Related: SAFE · Cap table · Secondary sale · Inversor ángel
A bit more nuance▾
- Simpler cap table for founders can mean more complex governance behind the SPV.
- Terms should still be readable; ask who speaks for the SPV in votes and information rights.
Go deeper▾
Discussion questions▾
- Who is the counterparty if an SPV invests — and who signs follow-on documents?
- Would a direct cap table line be clearer than an SPV for your stage?
Educational reference only — not legal, tax, or investment advice. Terms vary by country and deal; ask a qualified professional when it matters.