Definition
Delaware SPV
A special purpose vehicle formed under Delaware LLC law, the most common SPV jurisdiction in US venture and private equity.
A Delaware SPV is a special purpose vehicle organized as a Delaware limited liability company (LLC). Delaware is the dominant jurisdiction for SPVs because of its mature court system (the Delaware Court of Chancery), well-tested LLC statute, low formation cost, no requirement for a state-resident manager, and broad acceptance by venture issuers and counterparties. Most one-off venture allocations in the US are organized as Delaware LLCs operating under a manager-managed operating agreement, with the sponsor serving as managing member and limited partners holding membership interests.