
What Is SPV (Special Purpose Vehicle for Angels)?
An SPV for angel investors is a dedicated legal entity created to pool multiple investors’ capital into a single investment on a startup’s cap table.
SPV (Special Purpose Vehicle for Angels) Meaning
The SPV's meaning centres on simplifying cap table management while enabling group angel investment. To define an SPV in practice, angels invest in the SPV, which then makes one consolidated investment into the startup. This keeps the cap table clean, reduces administrative burden and allows investors to share due diligence and decision-making. A clear SPV definition also highlights tax considerations: SPVs can affect SEIS/EIS eligibility unless structured carefully, often requiring a nominee or a qualifying vehicle. An SPV stands for efficient collective investing, streamlined governance and easier founder-investor coordination.
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