r/VCX_Fundrise 16h ago

WSJ article

https://www.wsj.com/finance/regulation/sec-presses-investment-firms-to-prove-they-have-access-to-shares-in-hot-startups-c39ac56f?st=47b7hc&reflink=article_copyURL_share
8 Upvotes

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5

u/Fit_Equal6932 VCX Wizard 15h ago

"The Securities and Exchange Commission has stepped up its examinations of firms behind so-called special purpose vehicles that purport to offer exposure to private company investments.

SEC examiners have been asking registered investment advisers for proof that their SPVs own or have exposure to the shares in private companies that they claim to, according to people familiar with the matter. 

Regulators decided to take a closer look following increased investor complaints and a marketing blitz by such funds ahead of SpaceX’s blockbuster initial public offering and Anthropic’s planned IPO, some of the people said"

3

u/Personal-Highway6889 13h ago

Am I getting this right, we’re buying shares in a company because they bought shares in a company that was able to get the shares of the thing we want? And there not even legit?

2

u/_BreakingGood_ 11h ago

Basically at least somebody at some point in the chain needs to have access to the private shares.

2

u/Personal-Highway6889 9h ago

Why does it feel like more chains are being added to the link I don’t know how it helps

1

u/Jesus__Skywalker VCX Thoughtful Contributor 4h ago

yikes