In many venture rounds, companies set a minimum check size for investors.
Sometimes that’s purely practical: fewer parties, fewer signatures, cleaner communications, and less administrative drag during and after the round.
Sometimes it’s also a proxy for sophistication. A higher minimum check size tends to filter for investors who can evaluate risk, tolerate illiquidity, and operate comfortably within the realities of venture deals. It can also reduce the chance that a round ends up with a long tail of small holders who expect public-markets-style liquidity or reporting.
For smaller investors who want to participate, an SPV is a common solution.
By pooling capital, multiple investors can collectively meet the minimum check size, secure an allocation, and present as a single coordinated ticket. One manager can handle execution, funding mechanics, and ongoing communications, which makes the round easier to close and easier to live with afterward.
Done well, an SPV is just a clean bridge between the minimum check size the company wants and the smaller checks investors want to write.
