SPV-life. 😎😎😎🤣 Friends don't let friends buy SPVs.

SPVs charging 2% annual and 20% carry is insanely exploitive for a single equity fund that has no stock picking, no hedging, no active management, opaque accounting, no serious GP participation, etc. And often they're nested! Qualified purchasers/investors typically have no other option: gamble on a shady SPV or miss out. The obvious choice after due diligence is usually to pass, but it sucks, especially how hard the independent research is.

@bgurley If only there were another way to tap deep pockets of capital and allow for individuals to participate ...🧐

@bgurley The fees on these late stage ones are high right? And the sponsor puts up less than 1% of the capital?

@bgurley spvs are like the weird uncle at the ai funding party, everyone tolerates them but no one actually wants them around

@bgurley True that. Give up all agency.

@bgurley Why? It is merely a vehicle and if fairly priced (@AugmentMarkets has 0/0) with a trustworthy manager, it's really the only way to access outside of an IPO

@bgurley There were signs… and many more to come until they IPO (or DL 😉)

@bgurley Real friends only let them invest in funds with no discretion.

@bgurley @grok whats the problem with using SPV?

@bgurley SPVs are a huge grift but most of the time it’s the only way to get into these AI names. It’s that or wait till OpenAI goes public in a few years when their growth rate converges to GDP

@bgurley America also lets politics define its priorities. Red SUV loving voters helped slow EV adoptions dramatically. Tortures the engineers in our society.

@bgurley But Supernovas!!!

@bgurley Chamath back at it. New spac

@bgurley Why not?

I looked that up. If I have 3,000,000 GreenWave* Cruisers can they be classified as SPV's (Single Purpose Vehicles) No seriously, I want SPV's as part of GreenWave*s 10 Silos. If your investing in something like a "B" Corp like GreenWave* we have to insist on SPV's directed at particular projects and sub-projects. The biggest problem may be that Anthropic may be just a 1 Trick Pony

@bgurley You’re absolutely right.

@bgurley 💯💯

@bgurley Ok, so go democratize private financing instead of shutting everyone out.

@bgurley The large funds are the ones pushing this as it allows them to inflate valuations without scrutiny. Eg Founders Fund and 8VC investments in Anduril at a ridiculous $30B valuation came through their SPVs, not main funds. Ditto Lux's investment wet through an SPV.

@bgurley SPVs exist because rent seeking parasites like you got corrupt laws to be passed. Any time you want to face the music for being a value destroying rent seeking parasite, you are more than welcome.