Sequoia’s Roelof Botha warns ‘chumps’ not to buy into SPVs

One of Sequoia’s most prominent investors, the partner Roelof sees the signs of a leader in Roelof, enterprise capital, the least developed investors.

Placed a Warning about x On Thursday, “SPV is a return to repeat the wrongs of the SPV, the leading investor is in the last 10% of the capital, which is still in different way.”

This last period ended badly. In 2022, a very warmed VC market consisting of 2021 crashed. The fall still continues It is expected to be a failed starting year in 2025.

Hotha Special Purpose Vehicles (SPV) – a special warning of a structure to sell part of a starting investor’s shares to others. However, new investors actually do not receive shares at the beginning; they buy SPV shares, often at very exaggerated prices. This means that the starting assessment will only be forced to fly to the breakers of SPV sharing.

The SPV becomes a general general in the field of AI investment, which increases the astronomical amounts of some beginnings. The search for SEC documents is found At least nine SPVs Closed to anthropicle since 2024. The company is reported to be in talks to increase another $ 3.5 billion.

The picture is reported to be full of EU’s attempts to collect $ 1.5 billion information. Note that the company is not in the portfolio of Sequoia.

The trend is not limited to several companies. About each large billion AI company has investors that offer SPVs. And a large VC company firm

As a person involved in the second markets, “If we could not find a solid amount of SPV-laden deals:” If we knew that the name could not find a solid amount of investors, “If we knew that Andreessen was traditional companies,” We could not collect money from traditional VCS. “

Will they be investors? “Apple.”

Sequoia did not immediately respond to a request for comment.