- Chamath had raised 600 million dollars in its IPO to invest in private tech companies
- There are about 150 private tech startups valued at over $1 billion
Chamath Palihapitiya, founder of the venture-capital firm
Social Capital, has launched a new “blank-check” company in partnership with
the London-based VC firm Hedosophia, named Social Capital Hedosophia Holdings
Corp.
Social Capital Hedosophia said it had raised 600 million
dollars in its IPO to invest in private tech companies, Business Insider
reported. Blank-check public companies, or special purpose acquisition
companies, which raise money first and then figure out how to invest it, are in
vogue, according to The Wall Street Journal’s Maureen Farrell.
Social Capital Hedosophia estimates there are about 150
private tech startups valued at over $1 billion, compared with about 200 public
technology companies with a market cap of $1 billion. Private tech startups can
now hold out from going public indefinitely because of money available to fund
growth from private investors.
Twenty-two blank check funds have been launched on US
exchanges so far this year, raising 6.9 billion dollars, Farrell reports,
citing Dealogic data. Tony Bates, a Social Capital partner and former CEO of
Skype, is on the holding company’s board, while Palihapitiya will be the CEO.
No comments:
Post a Comment