What is an SPV in startup investing?

A special purpose vehicle is an entity created to make a single investment: backers fund the SPV, the SPV buys shares in one company, and it appears as one line on the cap table. Syndicates, scouts, and pro-rata top-ups run on SPVs.

SPVs democratize access to individual deals but stack fees (often carry per deal) and add a layer between the company and its ultimate backers. Each SPV files its own Form D, which is why filing feeds show many single-deal vehicles.