According to a new report at Bloomberg, Social Capital Hedosophia has filed plans confidentially with the SEC to raise $ 500 million for its newest blanket control firm.
It will be the fourth special-purpose acquisition company, or SPAC, to be lifted from the suit, which is led by Chamath Palihapitiya and his longtime investment partner, Ian Osborne.
Surprisingly, dozens more can be in operation. In the “All-In Podcast,” co-hosted by Palihapitiya, he revealed recently that he has reserved the symbols from “IPOA ” to “IPOZ” on the New York Stock Exchange. He also said he has $ 100 million to participate in each deal to demonstrate his alignment with potential investors.
What is the game? In the podcast, Palihapitiya outlined the Federal Reserve’s economic and interest rate forecasts and its plans to keep interest rates at zero for years to come. “I mean, quite honestly,” Palihapitiya said, “there is no way for any inflation at the next moment of any kind.”
That’s why he thinks investors should “get paid to be long [on] action, because your risk-free rate is zero and will soon be negative. And what should you do if you are a wealth manager? “
Here’s how he framed it: “Let’s say you’re in the California pension system, you have hundreds of billions of dollars, and you need to generate five or 6% a year to make sure your pension isn’t insolvent, and the government pays you zero. When everyone is in this situation, you have immensely long actions … So, all these opportunities generally get opportunities, and they are more realistic now than before. “
Indeed, when it comes to investing in the public or private market, Palihapitiya said, “I think it’s just about public companies. [that are worth getting behind]. . . I mean like, no offense, but if you’re a good stock collector in public markets, you’re generating better returns. [than] Sequoia, Benchmark – call it your best venture fund. I see all these people spitting on Twitter about how good they are in the first stage markets, but it’s all kind of small dollars and not so significant. ”
Of course, he reasoned to feel encouraged. The first SPAC of Hedosophy of Social Capital, raised in 2017, finally merged last year with the space tourism company Virgin Galactic, and is now estimated at just over $ 4 billion by public market shareholders.
The second bottom of the dress, which was collected in April, announced yesterday which will be founded with Opendoor, a company that buys and sells residential real estate and which may have difficulty passing it on to the public through a traditional IPO process, given its still uncertain economy.
Social Security Hedosophia’s third SPAC, also raised in April, has yet to meet its target, but the company said it will use its IPO revenue to buy a technology company that is primarily outside the United States.
Certainly, SPACs – which have not had a stellar reputation historically – have a growing number of other intrigued investors. According to SPACInsider, almost 100 SPAC they were raised in 2020 by just 7 a decade ago.
Although Sequoia Capital was having a stellar year – given its involvement in Zoom, Bytedance and Snowflake, among many other leading companies – its head of the United States, Roelof Botha, suggested in a interview eri that Sequoia did not rule out the possibility of forming SPAC, even while he implied it was unlikely. “I love the fact that there is more innovation” around the IPO process, he said. “Give more choice to companies.”