This seems a pretty unconventional use of the word derivatives.
Unless I'm missing something, the story here is that people are pooling money to setup a company to invest in Facebook. That's just normal investing - exactly like investing in a VC fund that invested in Facebook.
I suppose technically they are investing in a Facebook derivative, because they get returns from the investment company rather than Facebook stock directly. But people don't say a Vangaurd find is a Walmart derivative just because it invests in Walmart, nor do they say investing in the Accel Funx X (which funded Facebook) is investing in a Facebook derivative.
Unless I'm missing something, the story here is that people are pooling money to setup a company to invest in Facebook. That's just normal investing - exactly like investing in a VC fund that invested in Facebook.
I suppose technically they are investing in a Facebook derivative, because they get returns from the investment company rather than Facebook stock directly. But people don't say a Vangaurd find is a Walmart derivative just because it invests in Walmart, nor do they say investing in the Accel Funx X (which funded Facebook) is investing in a Facebook derivative.