Introduction:
At Stryde, we believe that investing in high-growth ventures shouldn’t be complicated. Yet, for many, the process can feel like navigating a maze—managing multiple investors, dealing with complicated paperwork, and understanding complex legal structures. We wanted to change that, and that’s why we leverage Special Purpose Vehicles (SPVs) to simplify the experience for our investors. In this blog, we’ll explain what SPVs are, how they work, and why our structure is a game-changer for anyone looking to invest in private markets.
What is an SPV?
An SPV, or Special Purpose Vehicle, is a legal entity created solely for the purpose of owning a specific investment. Instead of each individual investor holding direct shares in a venture, all investors are grouped into a single SPV, which then owns the shares in the target company. Think of the SPV as a “container” that holds all the investments and deals directly with the venture on behalf of the group.
Why We Use SPVs at Stryde
1. Streamlined Ownership:
When you invest through Stryde, you’re not just buying shares in a venture—you’re joining a group of like-minded investors, all unified under a single SPV. This structure simplifies ownership and eliminates the administrative hassle of managing hundreds of separate investors on the venture’s cap table. Instead of multiple individual investors, the venture only deals with one entity—our SPV.
2. Protection and Management:
By using SPVs, we can efficiently manage the investment on your behalf. This includes legal matters, communication with the venture, and voting rights. You don’t have to worry about the day-to-day complexities; our team takes care of the heavy lifting, so you can focus on growing your portfolio.
3. Simplified Reporting:
One of the best parts of investing through an SPV is that it simplifies reporting. You’ll receive regular updates from us on the performance of your investment, without having to wade through technical paperwork. Everything is centralised and clear, making it easy for you to track your investments.
The Benefits of SPVs for Investors
1. Lower Barriers to Entry:
By grouping investors into one SPV, Stryde allows individuals to participate in high-quality venture deals with lower minimum investments. This means more opportunities are available to investors who wouldn’t normally have access to private markets.
2. Consolidated Investment Power:
Acting as one collective through the SPV gives our investors more leverage. By pooling resources, we ensure that even small investors can take part in deals that were once only available to large institutions or high-net-worth individuals.
3. Reduced Administrative Burden:
Without an SPV, investors would need to individually manage their shares, voting rights, and legal responsibilities with each venture. The SPV structure simplifies this by consolidating everything under one vehicle. We handle all of the administrative tasks for you, ensuring a hassle-free investment experience.
How It Works:
1. You Invest:
When you choose to invest in a venture through Stryde, you’ll be investing in an SPV that groups the funds from all investors. This SPV will then be the entity to hold the shares offered in the venture.
2. We Setup:
Once the campaign is successfully closed, we create a DIFC based SPV to hold the shares in the venture, this SPV will be fully owned by the investors through Stryde and managed by us.
3. You Verify
Investors will be able to check the DIFC public register for the specific SPV and find their names under the ownership, additionally we issue digital share certificates in the SPV to each investor to ensure our investors are investing with confidence.
4. We Manage
Our team manages the SPV on behalf of all investors. This includes everything from handling legal matters to participating in shareholder decisions. You can sit back and relax, knowing your investment is in good hands. When the venture succeeds, returns are distributed proportionally to all SPV investors based on their contributions.
Conclusion:
At Stryde, we’re committed to making private markets more accessible, simpler, and more transparent. By using SPVs, we give our investors the opportunity to participate in high-growth ventures without the traditional complexities. Whether you’re an experienced investor or just starting out, Stryde’s SPV structure ensures that your investments are professionally managed and easy to track.
