Shadow Market of Sketchy AI Investments Booms with Layered SPVs

A shadow secondary market for AI company equity is booming, with sketchy deals brokered through multiple layers of special-purpose vehicles (SPVs). Ash Arora, a self-identified venture capitalist on Forbes 30 Under 30 Europe 2024, went viral for bragging about brokering an Anthropic secondary deal, prompting scrutiny over licensing. Anthropic updated its guidelines on May 11 to warn that unauthorized stock sales are invalid. Mike Chan of Deep Ventures reports receiving a flood of offers for third-layer SPVs, which are several steps removed from the original equity and offer unclear rights. Gregory d'Incelli of Scenius Capital notes that structures become progressively opaque. These deals often come with one-time fees of 15% or more, far above the typical 5%. Third-layer SPVs may require as little as $5,000 buy-in, compared to $10-20 million for first-layer, lowering barriers for retail investors. The hype around AI valuations—Anthropic's valuation doubled from $380 billion in February to over $760 billion—drives fervor. Sterling Crispin compares third-layer deals to "shitcoins." The trend reflects a broader "casino economy" identified by Kyla Scanlon, encompassing crypto, meme stocks, and sports betting. Mike Chan warns that when these companies eventually IPO at trillion-dollar valuations, retail investors will get "hosed."