TechCrunch
SPVs are generally formed by investors who have direct access to the shares of these startups and then turn around and sell a part of their allocation to external backers, often charging significant fees while retaining some profit share, known as carry. While SPVs aren’t new – smaller investors have relied on them for years – there’s a growing trend of SPVs successfully getting shares from the biggest names in AI. Rather than giving up the shares because the early investor can’t afford them, they’ll create the SPV, fund it by raising money from others, and, in most cases, charge additional fees.