“Psst! Want some Crusoe? We have an exclusive allocation, $100M, 10% upfront fee.” Like a man opening a trenchcoat full of watches on Canal Street, I received this message cold with an investment memo which said (I quote verbatim, spelling mistakes and all): “The vehicule allows qualified investors to enter via a SAFE with a valorisation capped at $35.5B”.

Crusoe is currently raising a funding round at ~$27B. Like most hot companies right now playing by the old rules, the round is being extensively brokered.

And every single broker says the same thing (while pinging other brokers, reaching out on LinkedIn, cold emailing the same lists of LPs): “The GP / company wants to keep this tight, cannot be marketed broadly”.

To the Crusoe finance team: I know you know that this sort of thing actively cheapens the perception of your company. The fact that so many brokers got involved so quickly means you’re losing control over your fundraise. That’s why late last week, you sent legal notices to a bunch of brokers and GPs asking them to stop marketing.

What you might not know is that activity didn’t die, just went underground in WhatsApp groups.

Your GPs are going to syndicate. That’s just the nature of a >$1B fundraise. A few C&Ds won’t help, and ultimately risks putting your round in danger. That’s why it is not just possible, but essential, to take control: set up standardized processes for broker / UBO approvals, own the narrative you want GPs to use, and orchestrate all the counterparties you want involved.

I’m working on a playbook for incredible companies to run tight, syndicated fundraises. I’m planning to share with a select few GPs and their portfolio companies; DM me if you’d like to be considered.