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1/ A quick primer on #SPVs
First an #SPV in the VC context simply means an entity setup to provide financing to startups or to acquire secondary shares in pre-IPO companies.
SPV #structures:
-LLC (common)
-LP
-Series LLC: Alumni Ventures Group
-Series LP: Assure/AngelList/etc
First an #SPV in the VC context simply means an entity setup to provide financing to startups or to acquire secondary shares in pre-IPO companies.
SPV #structures:
-LLC (common)
-LP
-Series LLC: Alumni Ventures Group
-Series LP: Assure/AngelList/etc
2/ Traditionally, #SPVs (special purpose vehicles) were used for structured financing transactions. These entities blew up in the 2009 financial crisis.
Today, it's very common to see SPVs on a Silicon Valley startup cap table. For example, in @Uber's #IPO there were 100+ SPVs.
Today, it's very common to see SPVs on a Silicon Valley startup cap table. For example, in @Uber's #IPO there were 100+ SPVs.
3/ Founders & employees are more active as operator angel investors. The broad swath of Silicon Valley CEOs invest. As a bridge between solo angel investor & full time GP, SPVs close that gap. They offer a chance for future GPs to test the waters. See @jmj @briannekimmel, et al.
