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 Kristi Marvin on 2023-12-09 at 11:45am

Terms Tracker for the Week Ending December 8, 2023 Welcome to our weekly column where we discuss the findings from our IPO terms tracker based on the previous week’s pricings. Well that escalated quickly. While last week was quiet, this week was far busier. SPACs saw one IPO start trading after pricing on Friday of...

by Marlena Haddad on 2023-12-08 at 1:59pm

Mobiv Acquisition Corp. (NASDAQ:MOBV) announced this afternoon that it has closed its combination with EV motorcycle-maker SRIVARU. Shareholders originally approved the deal at a special meeting held back on September 28, but at that time, the parties expected the transaction to take just a week to close. Redemptions whittled Mobiv’s IPO share pool of 10,005,000 down...

by Nicholas Alan Clayton on 2023-12-08 at 11:12am

Achari Ventures I (NASDAQ:AVHI) has entered into a definitive agreement to combine with medtech firm Vaso Corporation at an equity value of $176 million, or 19.5x its 2022 adjusted EBITDA. Wuxi, China-based Vaso provides IT services and sales support to medical device manufacturers. The combined company is expected to trade on the Nasdaq under the...

by Marlena Haddad on 2023-12-08 at 10:27am

EF Hutton Acquisition Corp. I (NASDAQ:EFHT) announced this morning that its shareholders have approved its business combination with E.C.D. Auto Design. At the meeting, there were 5,089,203 shares of common stock, representing approximately 76.82% of the issued and outstanding shares of common stock, present. In connection with the meeting, the company’s stockholders holding 3,470,945 shares,...

by Marlena Haddad on 2023-12-08 at 9:42am

Legato Merger Corp. III (NYSE:LEGT) filed for a $175 million IPO yesterday afternoon, becoming the fourth SPAC to file this week. While the other three SPACs that filed their S-1s earlier this week intend to pursue targets in the financial services and biotech industries, Legato III, similar to the earlier Legato SPACs, will focus on...


Copyright © 2023 SPACInsider, Inc. All Rights Reserved