Why tech investors need to look beyond seed-stage SPVs

A better, more equitable venture system requires a diverse array of strong, competent, daring venture firms operating at the seed stage.

There’s no doubt about it: Special purpose vehicles (SPVs) are having a moment. When Uber went public in 2019, more than 100 SPVs dotted its cap table. In 2021, Carta launched a self-service tool that makes SPV formation and management by angel investors as easy as putting together a group lunch order. According to Assure’s “The 2022 State of the SPV” report, the number of SPVs more than doubled between 2020 and 2021. But with Assure, the self-proclaimed “most-used Special purpose vehicle Platform,” suddenly shuttering last month, it might be time for investors to ask themselves if relying so heavily on this financial tool is the best path forward.

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