Roelof Botha, one of the most famous investors in Sequoia, sees signs of another greedy cycle brewing in venture capital.
He is a warning On Thursday, “We are destined to repeat the past mistakes! SPVs say that senior investors say less than 10% of the capital, but this time it matches the latest tourist Chumps who think the story will end differently. Just three years have passed. ” (He drilled the post with an explosive head emoticon.)
The last cycle is badly over. The VC market, which overheated in 2021 in 2022, crashed. Nakjin is still in progress 2025 is expected to be another cruel year of the failed startup.
BOTHA especially warns of a special purpose vehicle (SPV). This is a structure in which startup investors can sell access to stock masses to others. But new investors do not actually buy stocks at startups. They often buy SPV stocks at quite expensive prices. In other words, it means that some SPV stock owners must destroy the evaluation of new companies.
SPVs are particularly common in AI Investing, and some new companies are raising astronomical amounts. Search for submitting SEC is found At least 9 SPVs Since 2024, it has been tied to righteousness. The company is holding an additional $ 3.5 billion to raise.
The attempt to raise $ 1.5 billion by AI is full of SPV. information. No company is in the portfolio of Sequoia.
Trends are not limited to some companies. Almost all major AI companies have investors who offer SPVs. And if you are leading this transaction, you can seduce to the buyer with that name if you are leading this transaction.
One person who participated in the second market explains the transactions full of SPVs: “They are delivering hats from all transactions that can’t find enough VC investors, and the name gives a small amount and this stupid family office knows that Andresen is the worst company that can’t save money in traditional VC I know it is needed. ‘
What is the message of BOTHA for these investors? “Don’t buy it.”
SEQUOIA did not immediately respond to further requests.
