Former Facebook executive Chamath Palihapitiya to raise $500M for a large fund
WASHINGTON (Diya TV) — Chamath Palihapitiya, a former Facebook executive and a minority owner of the Golden State Warriors is attempting to raise $500 million as he builds a large investment firm.
According to a filing with the Securities and Exchange Commission, Palihapitiya is listed as CEO of “blank check company,” Social Capital Hedosophia Holdings. The company plans to raise $500 million in its IPO and subsequently acquire emerging private businesses that have little incentive to go public.
“Our mission is to create an alternative path to a traditional IPO for disruptive and agile technology companies to achieve their long-term objectives and overcome key deterrents to becoming public,” the filing said.
Palihapitiya has often condemned the traditional venture model and expressed his admiration for billionaire Warren Buffett, who erected Berkshire Hathaway into one of the World’s largest publicly-traded holding companies over a half century.
Social Capital is going to be more like a “bastard stepchild of Berkshire Hathaway and Blackstone and BlackRock” than a traditional venture firm, Palihapitiya said at an event in 2015.
One of Palihapitiya’s goals in the venture is bringing together “technologists, entrepreneurs, and technology-oriented investors,” the filing said.
The Wall Street Journal reported Palihapitiya’s team is planning to meet with investors soon, then initiating the IPO shortly thereafter on the New York Stock Exchange.
Hedosophia has offices in Hong Kong and London. Ian Osborne, CEO of Hedosophia, will be president of the new holding company. Former Skype CEO Tony Bates and former Twitter executive Adam Bain are among the Board members.