Rumors of Big Time Trouble for Social Capital Hedosophia
by Kristi Marvin on 2018-09-11 at 12:46pm

Social Capital Hedosophia Holdings Corp. (“IPOA”), which raised $690 million on September 13th, 2017, nearly one year ago today, might be in trouble.

According to Axios and the Silicon Valley Business Journal, the venture firm of Chamath Palihapitiya, who is IPOA’s Chairman and CEO, is “imploding“.   Failed venture firms are not totally shocking, but both articles pointedly place the blame squarely on Mr. Palihapitiya.

From the Silicon Valley Business Journal:

“Social Capital appears to be done, at least as a major venture capital investor,” Primack writes.

The firm’s leadership team is “hemorrhaging” its top talent, its limited partners are deeply unhappy with the ways things are being run, and its hedge fund is shutting down, Primack reports.

In addition, “Palihapitiya is regularly absent from the Social Capital offices, instead spending much of his time in Europe. He also is said by multiple sources to have repeatedly blown off investor meetings, sometimes sending regrets just minutes before they were to begin,” according to the report.

Current and former Social Capital employees say it could take days or weeks to get email replies from Palihapitiya.

In a tweet on Friday afternoon, Palihapitiya said the Axios story was “not accurate,” but did not elaborate further.

Social Capital Hedosohia still has one year of life left until they need to complete, but that detail is cold comfort to investors.  The share is currently trading at $9.87, but the warrant is trading down nearly 10% at $1.22.

Having said that, a lot can happen in twelve months.  And if you REALLY want to try and find a silver lining in all this, maybe if the venture firm shuts down it will force Mr. Palihapitiya to focus full-time on the SPAC.

Everybody loves a comeback.



Recent Posts
by Nicholas Alan Clayton on 2024-02-29 at 7:42am

At the SPAC of Dawn Over 100 potentially market-moving indices are to report data globally today, but the US economy specifically is to get a handful of major ones. At 8:30 am ET, traders are to get their hands on a number of readings around inflation in the country. Importantly, Core PCE numbers are to...

by Nicholas Alan Clayton on 2024-02-28 at 3:31pm

SK Growth (NASDAQ:SKGR) has entered into a definitive agreement to combine with digital investment platform Webull at an enterprise value of $7.3 billion. New York-based Webull provides an equities trading and education platform to about 20 million cumulative users. The combined company is expected to trade on the Nasdaq once the deal is completed in...

by Nicholas Alan Clayton on 2024-02-28 at 1:36pm

News and Rumors PR: Hillsinai Learning, which serves about 500,000 students across 40 schools and 5,000 partner schools, has hired iLearningEngines to build its AI learning automation platform. iLearningEngines has a pending combination with Arrowroot (NASDAQ:ARRW). SpaceNews: Virgin Galactic (NYSE:SPCE) does not expect any delays on its Galactic 07 mission to take passengers into space...

by Nicholas Alan Clayton on 2024-02-28 at 11:33am

Aetherium Acquisition Corp. (NASDAQ:GMFI) has entered into a definitive agreement to combine with Capital A (KL:5099), the parent company of the AirAsia airline at an estimated transaction value of $1.15 billion. Kuala Lumpur-based Capital A owns the AirAsia regional airline as well as subsidiaries in logistics, payments and loyalty. Transaction Overview Aetherium has an estimated...

by Nicholas Alan Clayton on 2024-02-28 at 7:58am

At the SPAC of Dawn NVIDIA’s (NASDAQ:NVDA) market cap is about 10% of the entire Nasdaq, so the notion that its own rise would float many boats is something of a given. But, it has also been specifically instrumental in the recent gains by a number of de-SPACs in the AI technology space. Soundhound (NASDAQ:SOUN)...


Copyright © 2023 SPACInsider, Inc. All Rights Reserved