SPV (Special Purpose Vehicle)

Definition

A legally separate entity created to hold investments or structure deals, often used to bundle small investors into a single shareholder to simplify cap tables.

Example Usage

We created an SPV for our friends and family round so all our angels showed up as one entity on the cap table instead of 40.

Origin

Corporate legal terminology, widely adopted in venture finance

Fun Fact

AngelList popularized SPVs by making it super easy for anyone to create them

Source: Corporate and venture finance terminology

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