Why an SPV for Angel Investors Is the Key to Scaling Investment Networks
A Special Purpose Vehicle (SPV) pools capital from several investors into one consolidated investment entity. Rather than cluttering a startup’s ownership records with many names, the SPV takes their place as one consolidated investor, simplifying the process for both the investors and the company. Angel investors have always had a very important place in startup funding. Quite often, they are the first to believe in the vision of a young company, providing it not only with capital but also with mentorship and connections. As angel investing grows in popularity, dealing with many different investors, deals, and startups becomes increasingly complex. This is where the SPV for Angel Investors becomes a game-changer . Understanding What an SPV Is A Special Purpose Vehicle (SPV) brings together several investors under one structured entity. Since it shows up as just one investor on the startup’s cap table, the SPV makes it easier to track owners...