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Showing posts from June, 2025

Why Investors Prefer Startups That Use SPV Setup Platforms

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  Raising capital has always been a key challenge for startups. But just as much as it’s a test for founders, it's also a risk calculation for investors. In today's fast-moving funding landscape, how a startup structures its fundraising efforts can influence investor interest more than ever before.    One solution that is catching on everywhere is the employment of special-purpose vehicle setup platforms. These platforms provide a more transparent, structured, and efficient means of handling startup investments—and smart investors are paying attention.    Simplified Cap Tables   One of the biggest concerns for investors, especially those writing extensive checks, is a messy cap table. When there are dozens of angel investors, friends, and early believers sitting literally on a startup's cap table, it makes future rounds of funding and decision-making cumbersome.    A special-purpose vehicle setup platform allows founders to pool multiple inve...

How to Create an SPV for Friends and Family Rounds: A Simple Approach

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  When you’re just starting, friends and family are often the first to believe in your idea. Their early support is valuable, but managing multiple small investments can become complicated quickly. As more people want to contribute, your cap table grows, and so does the administrative load .    That's where a Special Purpose Vehicle, or SPV, is helpful. Rather than taking individual checks from each individual , you can set up an SPV to capture all the money in one account and treat it as one entry on your company books. It simplifies the process, maintains relationships, and keeps you organized as you grow and expand.   Let's go through the steps of building an SPV for your friends and family round in the most straightforward manner possible.   Understanding the Basics    An SPV is a distinct legal entity formed expressly for one purpose—usually, to invest in one thing. In the case of early-stage fundraising, it serves as middleman between your ...