Wefunder Logo

Got a question? We'd love to help!

Can't find what you're looking for?

Email us: support@wefunder.com

Why do 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, cause legal issues, and make gathering stockholder approvals a challenge. 

With an SPV, founders can have an unlimited number of smaller investors grouped into one large entity, with voting power directed by a Lead Investor.

Can't find what you're looking for?

Email us: support@wefunder.com