SPACs will rule the world, or at least Chamath's future portfolio.
Chamath Palihapitiya, The founder of Social Capital has already tripled SPACs, the so-called blank check vehicle used to bring private companies to public markets. Its first SPAC bought Virgin Galactic last year, and its second SPAC bought Opendoor this week as part of a blockbuster deal that valued the instant home sale platform at $ 4.8 billion and less in cash. Its third SPAC officially raised funds in April and has yet to announce a deal.
Now it looks like he's going to double his triple down. After the bell rang on Wall Street that Friday, the venture capitalist filed three new SPAC vehicles with the SEC. Social capital hedosophia Holdings Corp. IV is valued at $ 350 million, Social Capital Hedosophia Holdings Corp. V has a total value of $ 650 million and Social Capital Hedosophia Holdings Corp. VI is valued at $ 1 billion.
These totals are goals: each SPAC must go through an investor roadshow process and officially raise capital before attempting to find an acquisition target. Each SPAC is independent and can share investors or have completely independent investors at the table.
The three new SPACs share similar managers: Palihapitiya itself; Ian Osborne, who administers Hedosophia; Steven Trieu, CFO for Social Capital; and Simon Williams, the chief administration officer of Hedosophia.
However, each has a different fifth director who may shed some light on how each SPAC differs in its strategy. Nirav Tolia, co-founder and CEO of popular social network Nextdoor, joins the fourth SPAC. Jay Parikh, a former technical director at Facebook who left earlier this year, is joining the fifth SPAC. Finally, Dick Costolo, former Twitter CEO and current venture capitalist, joins the sixth SPAC.
We talked about the acceleration of the SPACs this year and that shows up here in the microcosm of these vehicles of social capital. It seems like Palihapitiya and Hedosophia not only have great ambitions for these vehicles, but are increasingly mechanizing the fundraising process and using markets that seem excited for a path to growth.