SPV’s investing in SPV’s

A year ago, I wrote a post about market froth.

In the post, I shared how I had come across a special purpose vehicle (SPV) to invest in an internet startup where the SPV not only failed to share any KPI or financial data about the company (this is pretty common), but also didn’t share the terms of the investment like its price and shareholder rights. It was the first time that I came across such an SPV and I took the two-sided lack of transparency about the investment (you don’t know what you’re getting or what you’re paying) as a sign of an increased level of market froth.

My impression was that, over the last year, the tech market had calmed down, or at least not grown more frothy. But maybe I’m wrong.

Fast forward one year and we now have SPV’s which are set up to invest in SPV’s.

And I have no comment.

Originally published at Thoughts of a VC.