A Special Purpose Vehicle (SPV) is a business vehicle that allows investors to pool funds to acquire and manage a specific asset, or multiple assets. The asset is typically securities of a startup company that needs money to grow and is going to the private markets to raise capital.
SPVs contain the legal process of investment at the business level, rather than at the investor level. This keeps any legal decisions between 2 parties (for example, a startup and an SPV) rather than many parties (a startup and 100 investors).