A Complete Guide to Starting an SPV as an Angel Investor
Angel investing is exciting when it begins with personal checks and direct conversations with founders. However, once such startups and funding rounds become larger and more complicated for startups, handling multiple investments may easily become unmanageable. This is where the notion of launching an SPV as a method for an angel investor proves to be efficient. An SPV provides a clear framework that is characterized by simplified ownership and follow-on financing. In this case, it becomes not only a paperwork requirement but a powerful long-term strategic solution. Why Do SPVs Matter in Follow-On Funding? Follow-on rounds bring both optimism and intensity. It is essential for the next funding round that the new company is clear on ownership, while the early investors have to make sure that their initial commitment is still secure. Angel investors are often caught up in the dilemma between being good companions to the owner of the...