"The venture capital world has a liquidity problem. With IPOs scarce and M&A exits few and far between, investors have been stuck in positions for years, unable to return capital to their LPs or move into new opportunities. But while traditional exit doors have stayed shut, technology has opened up new ones-specifically, platforms that make it possible to create and trade Special Purpose Vehicles at scale, something that used to require armies of lawyers and fund administrators."
"The key insight that unlocked SPV automation wasn't about the fundraising process-it was about standardization. By creating a static legal document with well-understood terms where only a few parameters change, Sydecar transformed SPVs from negotiated contracts into something more like clickthrough agreements. "If we could just create a static document that has well-understood terms and then just change the few parameters that people actually care about, you can create almost like an end-user license agreement," the foun"
Venture capital faces a liquidity shortage as IPOs and M&A exits have declined, leaving investors unable to return capital or redeploy funds. Technology platforms now enable the creation and secondary trading of Special Purpose Vehicles (SPVs) at scale, reducing dependence on traditional exit routes and heavy legal workflows. Sydecar automated SPV formation by standardizing legal documents and allowing only a few changeable parameters, compressing a months-long, manual process into days. The platform founder leveraged experience as a securities attorney to identify standardizable tasks. Automation handles repeatable documentation and transactions, while complex negotiation and legal judgment still require human expertise.
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