What are Startup SPVs?
A Startup SPV (Special Purpose Vehicle) is a dedicated legal entity designed to pool capital from multiple investors to make a single investment in an early-stage company. Unlike traditional venture capital funds that invest in multiple startups over several years, a Startup SPV focuses exclusively on one promising venture, allowing investors to participate in specific deals that align with their investment thesis and risk tolerance. Usually, these are early stage deals.
Startup SPVs serve as the bridge between individual angel investors and institutional venture capital, democratizing access to high-growth potential companies that were previously only available to large funds or ultra-high-net-worth individuals. Each SPV is structured as a limited liability company or limited partnership, with clear governance structures and defined investment terms.
Why Startup SPVs Matter
Competitive startup rounds require substantial minimums and close quickly. SPVs let you pool capital with other investors to access deals you couldn't reach alone.
Access Competitive Deals
Seed and Series A rounds often require substantial individual checks. SPVs pool $5K-$25K contributions into check sizes that meet founders' minimum investment thresholds, securing allocation where individual small checks would not qualify.
Clean Cap Table for Founders
Founders prefer fewer investors on their cap table. An SPV consolidates multiple investors into one line, simplifying administrative burden and governance. This structure is more attractive to founders than managing multiple individual small investors.
Build Diversified Portfolio
Traditional VC funds require large commitments with 7-10 year lockup periods. SPVs let you spread smaller amounts across multiple startup deals, building a diversified portfolio without committing all your capital to one vehicle or waiting years for a fund.
Fast Deal Execution
Competitive startup rounds close quickly. SPVs can be formed and funded in time to capture allocation before rounds fill. Individual investors coordinating separately often miss deals due to slower execution timelines.
Proportional Ownership
Each investor owns a clear percentage of the SPV based on their contribution. When the startup exits, you receive your proportional share of proceeds. Simple, transparent ownership without complex fund structures or long capital call schedules.
FEATURES
Setup
Entity formation
Bank account setup
EIN setup
Template SPV docs
Onboarding
Invite investors
Instant invest
Deal page
Deal tracker
Investor KYC
Close
Reg D filings
Capital account statements
K-1 filing
Accounting
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We were very impressed by how Allocations handled our SPV. We’ve tried almost all the existing platforms, and Allocations was by far the best of the breed. Thank you! We firmly believe that Allocations can become the new standard in fund creation and management.
Mario Moscatiello
Flex Capital
Thank you team Allocations for making my climate tech dream for the average investor a reality and helping us solo GPs sleep better at night.
Kunal
Prithvi Ventures
Helios Capital is proudly powered by @AllocationsInc! Kachow Lightning McQueen! As my daughter would say.
Ryan
Helios Capital
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