Mon, 16 May 2022 Today's Paper

Lankan-born venture capitalist raises US $ 600mn in IPO for tech investments

18 September 2017 02:13 pm - 0     - {{hitsCtrl.values.hits}}

A A A

Sri Lankan-born Chamath Palihapitiya, the founder of the venture-capital firm Social Capital, has launched a new ‘blank-check’ company named Social Capital Hedosphia with London-based venture capital firm Hedosphia and has raised US $ 600 million in its initial public offering 
The shares were listed on the New York Stock Exchange last Wednesday at US$10 and were up 3.5 percent in the first half of Thursday.


Despite the high price tag, Social Capital Hedosophia doesn’t have any products or customers, and it doesn’t own anything yet. According to Business Insider, the company plans to buy stakes in private tech companies — from minority stakes to controlling interests to full ownership.

Sri Lankan-born Chamath Palihapitiya, the founder of the venture-capital firm Social Capital, has launched a new ‘blank-check’ company named Social Capital Hedosphia with London-based venture capital firm Hedosphia and has raised US $ 600 million in its initial public offering 

The idea is to give these tech companies the benefits of being a publicly traded company — like easier access to capital — with fewer drawbacks, like the ‘distraction’ of doing the actual IPO and the bother of the quarterly, short-term view of investors, Social Capital Hedosophia explained in the documents it filed with the Securities and Exchange Commission.


This tactic also gives public investors access to the wealth created by well-performing private tech companies. Right now, most of that wealth is going to a small pool of investors, mainly the VCs and private-equity firms that get invited to the investment table.


Social Capital Hedosophia estimates that as of May, there were about 150 tech startups valued at over US$1 billion, compared with about 200 public technology companies with a market cap of US$1 billion. In years past, those 150 startups would have become public companies. Today, they can hold out as private ones indefinitely because there’s so much money available to fund their growth from private investors.


Such blank-check public 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. Twenty-two such funds have been launched on US exchanges so far this year, raising US$ 6.9 billion, Farrell reports, citing Dealogic data.


That’s not necessarily to say Palihapitiya’s will succeed in picking tech companies that will make its investors wealthy. But it is being backed by a who’s who in the Valley circles — Tony Bates, a Social Capital partner who’s best known as the former CEO of Skype, is on the holding company’s board.
Also on the board is Adam Bain, the well-liked former chief operating officer of Twitter who has been relishing in time off from a full-time job since he left in November. Bain has been advising startups and doing some other investments and board work, such as joining that of the sneaker company Goat last summer. There has been a lot of speculation about which company will finally talk Bain out of his retirement and back into an exec role.


But Palihapitiya will be the CEO of Social Capital Hedosophia. He’s well known as one of the original executives of Facebook and an owner and board member of the Golden State Warriors. As an investor, he has backed companies like Box, Palantir, Pure Storage, Slack, and Yammer.

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.

  Comments - 0

Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment




Order Gifts to Sri Lanka. See Kapruka's top selling online shopping categories such as Toys, Vegetables, Grocery, Flowers, Birthday Cakes, Fruits, Chocolates, Clothing and Electronics. Also see Kapruka's unique online services such as Money Remittence,News, Courier/Delivery, Food Delivery and over 700 top brands. Also get products from Amazon & Ebay via Kapruka Gloabal Shop into Sri Lanka.

 

Sell your vehicle & house fast with hitad.lk only cost is Rs.400, Advertise in Hitad.lk for free to sell your mobile phone. Want to sell your Pet, Advertise for Free in hitad.lk Search for Houses in Sri Lanka and find the best place through Hitad.lk find your best tuition place. Find the best partner for you, visit hitad.lk Find anything at any time hitad.lk.


The Three Universal Truths in Buddhism

Buddhism is a moral and philosophical system, which expounds a unique path of

After night of terror, activists accuse government of smokescreening

On May 9, 2022, several hours before former Prime Minister Mahinda Rajapaksa

RECOVERY OF STOLEN ASSETS – Part I

The “#gotagohome” campaign that started a few weeks back demanding the Pr

‘GotaGoGama’ rises through ashes after Monday’s nightmare

A half burned down tent standing on plastic pillars, heaps of rubble from the