December 2025 Newsletter

Overview of Special Purpose Vehicles

What is an SPV?

SPVs are independent legal entities most often with a single objective: to invest in one company. An SPV can take on different legal structures of which LLCs and LPs are the most common. SPVs bear isolated risk and comply with an independent tax structure. Read more at Investopedia.

Their popularity has led to the creation of several widely known SPV management companies. JHIG and Teton Angels have together chosen to manage SPV investments using the platform Sydecar  because of its efficiency and expertise when it comes to supporting companies that benefit Wyoming and the mountain west.

Benefits to companies and investors

• For companies, SPVs simplify the capital table by operating as a single entity rather than bringing on numerous smaller investors. Managed SPVs offer increased simplicity and customizable economics, allowing for quicker investments and access to new investor networks.

• For investors, SPVs offer flexible participation, outsource the operational and management workload to a third party, and allow individual investors to more easily meet minimum investment requirements by pooling resources.

What to expect as an SPV investor

SPV investors receive regular updates and automated K-1s and tax documents from the management company. Be aware that invested capital will typically be locked in the SPV for 7–12 years until the company undergoes a liquidity event (acquisition, IPO, or otherwise). As it is highly unusual to sell SPV shares, it's best to assume that you are in for the long haul!

SPVs offer a unique opportunity to elevate the Wyoming startup and investor ecosystem, through expanding feasible capital networks, simplifying time/work requirements, and streamlining the investment process. As always, JHIG refrains from recommending investment opportunities, but rather facilitates connections between investors and companies aligned with our mission to strengthen economic development in Wyoming communities.