Special Purpose Vehicle

Definitions

1. A separate legal entity created for a specific investment, transaction, or asset-holding purpose. In startup fundraising, special purpose vehicles are often used to group multiple investors into one line on the cap table.

   In plain English: A separate legal entity created for one specific investment or transaction purpose.

   Example: "Several angels came in through a special purpose vehicle so the cap table stayed manageable."

Related Terms

• Cap Table
• DeFi
• Contingent Valuation
• Contribution Margin
• Guidance
• Capital Call
• SPV
• Valuation