Raising capital now isn’t so much about signing a check. It’s about aggregating the appropriate capital from the appropriate sources, and doing so in a way that keeps it clean, compliant, and transparent for everyone. That is where Special Purpose Vehicles (SPVs) come into play. Done properly, establishing an SPV can de-risk your raise and allow you to bring in high-quality co-investors who believe in your vision.
This blog explores what it takes to create an SPV for fundraising and make sure it’s built to attract the right kind of partners.
Understanding the Role of an SPV
An SPV is a standalone legal entity established for a single investment purpose—typically to enable a group of investors to come together and invest in a specific startup or opportunity. Instead of crowding a startup’s cap table, all investors are consolidated into a single line through the SPV. This makes things easier not just for the investors, but also for the startup receiving the funds.
When you create an SPV for fundraising, you’re building a structured way for people to co-invest alongside you. It adds clarity, provides legal protection, and offers a professional approach to what could otherwise be an informal deal.
Setting the Foundation
The first step is to select the appropriate structure and complete the legal setup. Most SPVs are formed as limited liability companies (LLCs), typically in the state of Delaware. There are documents of formation to complete, bank accounts to open, and compliance requirements to meet. This may seem daunting, but much of this can be handled by platforms and legal services.
Nevertheless, it’s your job to get the SPV properly formed and have the investor money treated with care. This establishes early trust—a key ingredient to finding the proper co-investors.
Defining the Opportunity
Before reaching out to potential investors, ensure you have a clear understanding of the opportunity itself. People don’t just back startups—they back the person curating the deal. If you’re leading the SPV, make sure you can confidently explain why this company, why now, and what you see that others might miss.
Creating a concise, compelling investment memo is helpful. It needs to tell the story of the startup, the opportunity in the market, the hoped-for terms of the deal, and why you’re investing in the company. When you create an SPV for fundraising, this memo becomes your calling card. It’s what helps others get excited and feel informed enough to make an investment.
Earning Trust Through Communication
Trust doesn’t come from flashy presentations. It comes from being honest and available. If you’re spearheading the investment, your fellow investors will look to you for guidance and leadership. That requires being open about both the risks and the payoffs.
Don’t hide behind jargon or overhype the opportunity. Be transparent about your role, the expected carry, and what kind of involvement, if any, you’ll have with the company post-investment. A co-investor who feels well-informed is far more likely to invest—and to come back for future deals.
Making the Process Investor-Friendly
Perhaps the single most important aspect in bringing in co-investors is how painless you make it. Investors today want a seamless experience—from wire transfers to signing papers. Anything that rubs, slows down, or confuses them will result in drop-outs.
That’s why it helps to use a trusted SPV provider or platform. These tools manage paperwork, compliance, and fund transfers, allowing you to focus on your relationships. When you create an SPV for fundraising, you’re essentially hosting a process—and the smoother the experience, the more likely people are to say yes.
Finding the Right Co-Investors
Not all investors are a good match for all deals. Rather than sending out a mass invite to your whole network, consider who would really be interested in this particular deal. Personal approaches are better than mass notifications. If you’ve done the work of building strong relationships, now’s the time to tap into them.
People are more likely to commit when they feel the invitation is tailored to them. A personal message spelling out the deal and why you considered them is more powerful than a bulk email.
Keep the Momentum Going
After the raise is done, you don’t stop working. The post-investment experience is what differentiates you. Frequent updates, however short, go a long way in demonstrating to investors that you’re closely tracking the deal and remaining engaged.
This also sets you up for the next round. When co-investors feel respected and informed, they’re more likely to join again. That’s how you build a loyal base of backers over time.
Conclusion
When you create an SPV for fundraising, you’re not just organizing capital—you’re curating a community. The quality of your co-investors can impact not only this deal but every future deal you lead.
By focusing on clarity, trust, and simplicity, you provide people with a compelling reason to join you. And in a world where trust is rare and access is everything, that’s how great syndicates are built—one strong deal at a time.
