SPACs are going to rule the world, or not less than, Chamath’s future portfolio.
Chamath Palihapitiya, the founding father of Social Capital, has already tripled down on SPACs, the so-called “clean examine” automobile that takes non-public corporations and flips them onto the general public markets. His first SPAC purchased Virgin Galactic final yr, and his second SPAC purchased Opendoor this week in a blockbuster deal valuing the moment residence sale platform at $4.eight billion, much less money. His third SPAC formally fundraised in April, and has but to announce a deal.
Now, it seems to be like he’s going to double down on his triple down. After the bell rung on Wall Street this Friday, the enterprise capitalist filed three new SPAC autos with the SEC. Social Capital Hedosophia Holdings Corp. IV has a headline worth of $350 million, Social Capital Hedosophia Holdings Corp. V has a headline worth of $650 million and Social Capital Hedosophia Holdings Corp. VI has a headline worth of $1 billion.
Those headline values are targets: every SPAC might want to undergo an investor roadshow course of and formally elevate capital earlier than they will start looking for an acquisition goal. Each SPAC is impartial, and should share buyers or have totally impartial buyers across the desk.
Can’t cease, gained’t cease: Social Capital Hedosophia simply filed for its fourth SPAC, says new report
The three new SPACs share related managers: Palihapitiya himself; Ian Osborne, who manages Hedosophia; Steven Trieu, the CFO of Social Capital; and Simon Williams, the chief administration officer of Hedosophia.
However, every has a distinct fifth director, who maybe sheds some gentle on how every SPAC differs in technique. Nirav Tolia, a co-founder and CEO of fashionable social community Nextdoor, is becoming a member of the fourth SPAC. Jay Parikh, a former head of engineering at Facebook, who left earlier this yr, is becoming a member of the fifth SPAC. And lastly, Dick Costolo, the previous CEO of Twitter and present enterprise capitalist, is becoming a member of the sixth SPAC.
We’ve been speaking concerning the accelerating tempo of SPACs this yr, and that seems in microcosm right here round these Social Capital autos. It appears as if Palihapitiya and Hedosophia not solely have nice ambitions for these autos, however are more and more mechanizing the method of fundraising them and benefiting from markets that appear excited for any avenue towards development.