In recent years the Special Purpose Vehicle (SPV) has emerged as a device to quiet those gnashing teeth. Originally, SPVs were mostly used by loose groups of angels to facilitate investment in a specific emerging company, most often in a seed or other very early round. They are still used in that scenario, but more recently are being employed in later rounds by smaller funds that participated in earlier rounds but lack dry powder to either protect themselves in down rounds or double-down in flat and up rounds
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