Microfund-SPV Model Gains Ground as Traditional VC Funds Struggle

Venture capital has traditionally relied on 10-year, closed-end blind-pool funds, with limited partners committing capital before general partners select investments. That structure gives managers discretion but locks up investor money and imposes recurring fees across the committed pool. A hybrid model combining smaller funds with deal-by-deal special purpose vehicles, or SPVs, is gaining appeal by preserving early-stage access while giving managers more flexibility to finance follow-on rounds.

An Odin survey found that 84% of general partners have either used SPVs or plan to do so, signaling that deal-specific vehicles are moving into the VC mainstream. The structure can let limited partners choose individual transactions and reduce the fee burden associated with larger blind pools. The supplied report did not specify the survey’s publication date or sample size, and disclosed no dollar amount for a particular fund, fundraising round or investment.