Special Purpose Vehicle
Also called SPV
A special purpose vehicle is a company set up to pool several investors' money into a single investment in one startup, so they appear as one entity on the cap table.
Why it matters
SPVs keep a cap table clean when many angels invest together, which founders and future investors appreciate. They are the plumbing behind most syndicates and rolling funds.
For example
Twelve angels pool their cheques into a single SPV that invests 3 crore into the startup, appearing as one clean line on the cap table.
Go deeper
Related terms
Also in Starting Up
See how founders actually handle this on Raising your first round, part of the Starting Up hub.
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