Using an SPV for smaller (friends & family) checks in a traditional search fund

June 15, 2025
by a searcher from Massachusetts Institute of Technology - MIT Sloan School of Management in Cambridge, MA, USA
Hi all,
I’m in the final stretch of raising my traditional search fund and have a handful of friends, ex-colleagues, and other supporters who each want to write smaller checks ($5 k – 30 k), a mix of US-based and international investors. Rather than receive 10+ wires and clutter the cap table with lots of smaller investors (and K-1s), I’m considering forming a simple SPV that would pool these commitments and invest as a single line item into my search fund LLC.
I’d love to hear from anyone who has done this in the traditional search fund context:
- How common is it? and how comfortable are investors and lawyers with this structure?
- Any gotchas around governance, voting rights, side letters, or pro-rata rights I should keep in mind so the SPV doesn’t spook larger investors?
- Any platform/provider recommendations (AngelList, Sydecar, Tribevest, Carta, Mainshares, DIY Delaware LLC, etc.)?
If you’ve gone down this path—or decided against it—I’d really appreciate your input. Thank you in advance!
from Northwestern University in Chicago, IL, USA
from Williams College in Cambridge, MA, USA