The SPV ecosystem concentrates power with a small number of tech lords who control access and allocations.

The close, real relationships between individual investors and entrepreneurs that were possible 30-40 years ago no longer exist today due to the influx of too many entities and intermediaries.

“40 years ago, 30 years ago, it was possible if you were an individual to form a relationship, a real relationship, close relationship with the people that you were getting into business with. That doesn't exist today.”

Some SPVs feature no GP commit, a 10% upfront fee, carry, and no term limit, demanding life-changing compensation with zero risk to the GP.

“No GP commit 10% one-time upfront fee with some carry structure generally where you're just like demanding basically that you get paid like life-changing amounts of money with zero risk and then you also get a huge amount of upside. The other thing is like they often don't have I've seen a few that have don't have a term limit.”