00:00What are we, which ones are we talking about specifically?
00:02Because when I think of SPVs, I think of like off-balance sheet debt.
00:06Financing, yeah.
00:07That Mag7 companies are using to finance data center build-outs.
00:10Just the easiest way to think of it is if you're investing in a company, you're on the cap table.
00:15Congratulations, Matt Miller, you own stocking company. Why?
00:18If you don't have the ability to raise enough money to write a check, you get a group of investors,
00:22you form one entity, call it a special purpose vehicle, that's on the cap table.
00:26But the thing that's happening from that is we're seeing layered SPVs that are charging fees,
00:31charging carry, that are turning around and saying, I have a chunk of an SPV that's on the cap table.
00:36Well, now I can sell it to a dozen, a hundred people who give me money.
00:40I collect a fee. I collect carry.
00:42And then hopefully when this thing goes public, we all distribute shares from there.
00:46But I make a lot of money on the way there.
00:48The issue is these deals are opaque.
00:51There's a lot of uncertainty around who owns the shares.
00:54Are they from a former employee who's promising shares at some point when an IPO happens?
00:59We've already seen cases where promoters are saying, I have shares and access to this company, but they don't.
01:05And they're committing outright, allegedly committing outright fraud.
01:08And that's something we've been trying to do.
01:09You know, that would be not just alleged.
01:11That would be literal fraud.
01:14So are they getting these shares from former employees?
01:17Are they going to secondary markets?
01:19Because there are marketplaces set up for this kind of trading.
01:21Well, there are marketplaces set up for this trading, but if you ask those marketplaces, do you have actual shares
01:26of SpaceX that you're connecting buyers and sellers with?
01:29Nine times out of ten, they're going to admit, oh, no, there's so much demand that we can't access that.
01:34So they're actually using SPVs or selling stakes in SPVs to these companies.
01:39The big thing is to keep in mind, though, as these companies are more sought after, that's when you see
01:44layered SPVs and see more difficulty getting access.
01:47If you're talking about a smaller company that's earlier stage, maybe those are the ones that you can get access
01:51to on secondary platforms.
01:52But for the SpaceX's of the world, that's not necessarily the case.
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