Roelof Botha’s Sequoia warns of “Chumps” not to buy in SPVS
One of the most prominent investors in Sikoya, administrative partner Ruwaoov Batha, sees signs of another course in a greedy cycle in the investment capital, where the least developed investors are likely to be harmed.
Publish a Warning on X On Thursday, writing, “We are still able to repeat the mistakes of the past!
This last session ended badly. In 2022, the 2021 VC market was crashed. The repercussions are still ongoing, with 2025 is expected to be another brutal year from failed startups.
Botha specifically warns of special compounds for special purposes (SPVS) – a structure that allows the start -up investor to sell access to a large part of their shares to others. But new investors do not already buy shares in startup; They buy SPV shares, often at large prices. This means that the startup assessment should only rise for some SPVs to break it.
SPVs has become especially popular in investing artificial intelligence, as some startups raise astronomical sums. Search for SEC files in At least nine spvs Located to the Anthropor since 2024 alone. It is said that the company is in talks to lift another 3.5 billion dollars.
The attempt to collect artificial intelligence to raise $ 1.5 billion is also full of SPVS, for each Information. Note that none of the company is in the Sequoia wallet.
The trend is not limited to a few companies. Almost every Amnesty International Company, with billions of artificial intelligence, has investors offering SPVs. And if VC has large names-for example, Sequoia Archrival Andressen Horowitz-this name alone can attract buyers.
One of the people participating in the second salary markets describes SPV deals like this: “They are passing the hat on all deals that you cannot find enough VC investors and that the names company puts a small amount and that these stupid family offices say Oh,“ Androns leads it must be good, ”although we know that these are the worst companies that cannot collect money from traditional VC.”
Batha message to these potential investors? “Don’t buy it.”
Sikoya did not immediately respond to a request for further comment.
