For the complete documentation index, see llms.txt
For the complete documentation index, see llms.txt
Wefunder
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Overview: SPVs
## What is an SPV and how does it work?
An SPV, or "Special Purpose Vehicle", is an entity that is set up for the sole purpose of investing in your company. It allows founders to raise money from hundreds of angel investors with a single cap table entry. The angels invest in the SPV, which then invests in the company.
## Who manages the SPV?
We do!
## What are the benefits of using an SPV?
Some of the benefits of SPVs are:
- It keeps your cap table clean. This saves time on admin, and makes you more appealing to VCs in the future.
- Since there is one signatory for all the investors in the SPV, you'll avoid having to chase dozens of investors for signatures when you raise a follow-on round.
- It helps you raise more capital from valuable investors that invest smaller amounts – like friends, batch mates, customers, and other smaller angels.
## Can investors invest outside the SPV?
Yes. We support investors investing through the Wefunder platform, but outside of the SPV, if you would like them to be Direct on your cap table. Investors investing outside of the Wefunder SPV pay no investor fees.
## How many investors can be included in an SPV?
We allow 247 investors in your SPV.
