An SPV (”Special Purpose Vehicle”) enables a group of investors to pool capital to invest in a single company. Deal leads build a relationship with a company, acquire an allocation into their funding round, and then aggregate capital via the SPV, which invests as a single shareholder on the cap table.

About the legal structure of an SPV:

• SPVs on Sydecar are formed as Series LLCs, a type of company that provides liability protection.

• Series LLCs are part of a master series structure in which a master LLC is registered, allowing for a large number of series LLCs to be established under the master LLC without additional registration.

Why are Sydecar SPVs structured this way?

Because the master LLC is the only entity that needs to be registered, the master series is more cost-effective (as it avoids the need for annual state fees and registered agent costs). At the same time, because each series will have separate ownership structures, memberships and operating agreements, the assets and liabilities are insulated from one another.