For the complete documentation index, see llms.txt
For the complete documentation index, see llms.txt
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Why startups use SPVs
Startups use SPVs to ensure their future growth and follow-on financings won’t be at risk. Having too many individual stockholders can make venture capitalists skeptical, require companies to go public before they're ready, and make gathering stockholder approvals a challenge.
With an SPV, founders can have unlimited unaccredited investors grouped into one large entity, with voting power directed by a Lead Investor.
For more info on how SPVs solve some tricky legal issues in structuring investments, see [**here**](https://wefunder.com/updates/142774).
