“Boiler room raised $74 million selling retirees SpaceX, Anduril, Anthropic, and Perplexity while reaping ‘massive hidden fees,’ SEC claims,” my colleague Amanda Gerut wrote last week, outlining a case that the SEC has brought against a Long Island-based financial firm it’s calling a pre-IPO “boiler room.”

At the center of the SEC’s allegations, The Spaventa Group, run by former broker Andrew Spaventa. The complaint, filed Friday, is a doozy: The SEC is alleging that Spaventa and his firm had a force of more than 100 agents, making thousands of phone calls, to sell shares in pre-IPO darlings—with no hidden fees. The companies the agents were (again, allegedly) selling were the sexiest private company names out there, including Anduril, Anthropic, Perplexity, and SpaceX (before its IPO).

That there was an alleged boiler room scam running in the tri-state area, amid a legendary, AI-fueled run-up in the private markets isn’t surprising. (I’ve written extensively about the absolute exuberance—and likely fraud—that’s bound to emerge from this time, as investors chase phantom Anthropic shares, and the secondary market is both massive and unregulated). What is surprising is here the scale that the SEC says the scam hit, as Fortune’s Gerut wrote: 

“More than 800 people bought in. Most were retail investors, and more than 650 put in $100,000 or less, while over 100 were retirees, according to the Securities & Exchange Commission. The alleged boiler room raked in more than $74 million for 11 private funds run from offices on Long Island and New Jersey over the course of four and a half years from December 2020 to June 2025. 

Despite the promise of no rip offs from “unnecessary fees,” investors paid on average 46% more for their positions than Spaventa’s own companies paid to get them, the SEC alleged in a complaint filed on Friday in the Southern District of New York. In some cases, the premium ran as high as 91%. Investors allegedly had no idea the markups were so high.” 

Freeze frame; 800 people buying in, most with $100,000 or more, with more than 100 retirees, to the tune of an eventual $74 million—that’s a real scale-up from the last high-profile pre-IPO fraud chase the SEC brought this year, when the regulator brought a case against Giovanni Pennetta, alleging he’d misappropriated $10 million investor dollars while selling fraudulent shares of companies like Anduril. (Pennetta ultimately pled guilty to one count of wire fraud.)

Importantly, Spaventa denied the SEC’s claims when my colleague reached him by phone. 

But I’ll be following this case as it goes on—and others like it. Because regardless of how the Spaventa case plays out, we haven’t heard the last of the SEC on the chaotic swirl of demand that’s led to the increasingly public private markets. 

See you tomorrow,

Allie Garfinkle
X: @agarfinks
Email: alexandra.garfinkle@fortune.com

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VENTURE CAPITAL

– Gravis Robotics, a Zurich, Switzerland, Austin, Texas, and Oxford, U.K.-based developer of technology that helps construction equipment operate autonomously, raised $200 million in Series A funding. SoftBank led the round.

– Peripheral, a Toronto, Canada-based developer of AI technology that turns live sports video into 3D experiences, raised $8.7 million in seed funding. Deloitte Ventures and Inovia Capital led the round and were joined by Khosla Ventures and Entrepreneurs First.

– Entravel Group, a U.S.-based travel-booking infrastructure provider, raised $7.5 million in funding. Ethereal Ventures and Finality Capital led the round and were joined by GSR, Varrock, G1 Ventures, Seier Capital, and others.

– InifiniG, a Los Gatos, Calif.-based provider of mobile-network coverage for office buildings and other enterprise locations, raised $5.2 million in seed funding. J2 Ventures and Stormbreaker Ventures led the round.

– Space, a San Francisco-based data storage company, raised $2.4 million in pre-seed funding. a16z Speedrun led the round and was joined by Golden Ventures, Northside Ventures, and angel investors.

PRIVATE EQUITY

– JLL Partners acquired Life Couriers, a Munich, Germany-based provider of time-sensitive logistics services for health care and life-sciences companies. Financial terms were not disclosed. 

EXITS

– Bowmark Capital acquired a majority stake in InfraXmedia, a London, U.K.-based publisher and events company covering the digital-infrastructure industry, from Opus Origin. Financial terms were not disclosed. 

FUNDS + FUNDS OF FUNDS

– Floating Point, a Boston, Mass. and New York City-based venture capital firm, raised $125 million for its third fund focused on the health care, logistics, finance, energy, and defense sectors.