Harvey Multani

Employee-led SPVs: help staff invest in the startup they work at

Shaan describes a guy (Harvey Multani) helping startup employees form special purpose vehicles to invest in their own company's next round — employees ask the CEO to carve out space, the operator raises outside money into the SPV, and employees get carried interest without putting in their own cash.

“This guy's doing is he's helping, let's say you're an employee at a hot startup, you can create an S, so you can go to the CEO and you can say, hey, employees, we want to stick around for longer, we want to be even more invested in the success here, and we're not asking you for anything in return, but we would like to invest in the next round. Would you carve out space for us in the next round?”

Steal thisBundle key employees into an SPV, get the CEO to carve out allocation in the next round, then fill it with outside capital and share the carry with the employees.