Despite ongoing  litigation involving labor disputes between its drivers, it seems wealthy investors are still willing to invest boatloads of money to be a part of Uber. A special fund known as New Riders L.P. -a lesser-known contribution to the billions of dollars in capital that Uber has been raising-allows investors to bet on Uber’s success. However, investors appear to be doing this blindly.

The financial disclosures on revenue and projections are being provided to investors but the offering document for the New Riders fund does not provide any financial details about Uber itself. Additionally, equity in Uber is obtained indirectly through the fund offering little in ways of protection. Despite this, the latest round offered commitments of upwards of $500 million which values Uber at $62.5 billion. The fund’s investors seek to profit the moment Uber decides to go public at a presumable higher valuation. Such risky investments seem to be the pattern of investors with deep pockets as other investors have sought preferred stock in companies such as Facebook before they went public. The possibilities surrounding Uber allow it to solicit large quantities of capital without having to disclose too much financial information.

If you are a member of Spiegel & Utrera, P.A.’s General Counsel Club and have business related questions, call (800) 734-9900 or clubassist@amerilawyer.com for assistance. Remember, as a member of the  General Counsel Club, you receive unlimited legal, business, credit and tax advice all year long.

Spiegel & Utrera, P.A. is a corporate law firm with its main offices located in Miami, Florida with offices throughout the United States. As a law firm, we do more than just help you form your business entity. We stand ready to help with the maintenance of your legal business entity! We will assist you with Incorporation Service, Trademarks, Copyrights, Estate Planning, Legal Counsel, Wills,Trusts, Agreements & Leases, Corporate & Company