"SPVs, which let investors pool their funds for a single, one-off deal, are generally considered less desirable for hot startups because most companies prefer a direct relationship with investors. While Anthropic permitted SPVs in earlier rounds, as its leverage with investors increased, it started disallowing them last summer, as Business Insider previously reported. The company continued to ban them in its latest $30 billion fundraising round announced Thursday, according to a source familiar with the matter."
"One pitch from last month viewed by Business Insider offered Anthropic shares at a $350 billion valuation, the same valuation that marquee firms like D. E. Shaw, Dragoneer, and Founders Fund were offered. It had a catch: Investors were asked to pay a 10% management fee on top of 10% carry - meaning the sponsor takes 10% of any profits -and they will not receive shares in the actual company; instead, they bought another investor's shares, which is known as a multilayer SPV."
SPVs let investors pool funds for a single, one-off deal and are generally less desirable for high-profile startups that prefer direct investor relationships. Anthropic allowed SPVs in earlier rounds but began disallowing them last summer and maintained the ban in its latest $30 billion fundraising round. Multiple SPVs have continued to market Anthropic shares, including offerings at a $350 billion valuation that charged a 10% management fee plus 10% carry and used multilayer structures where investors buy other investors' shares. At least two SPVs were formed recently on the Sydecar platform per SEC filings. Unsanctioned SPVs can lead to deal voiding, returned funds, or federal fraud investigations.
Read at Business Insider
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