Opportunity Sri Lanka | » Social Capital IPO generates USD 600mn to invest in tech ventures
Social Capital IPO generates USD 600mn to invest in tech ventures

Social Capital IPO generates USD 600mn to invest in tech ventures

Founder of venture-capital (VC) company Social Capital, Chamath Palihapitiya has partnered with UK-based VC company, Hedosophia and initiated a “blank-check” firm that will be registered as, Social Capital Hedosophia Holdings Corp.
According to Business Insider, Social Capital Hedosophia had made USD 600 million through an IPO and the funds will be used to invest in private tech companies.
Maureen Farrell of The Wall Street Journal said that “Blank-check” public companies, also referred to as“special purpose acquisition” companies, first raise capital and subsequently strategize on trendy investment options.
The company approximates that around 150 private tech start-ups exists that amount to a total value exceeding USD 1 billion in comparison to around 200 public listed tech firms that add up to a total market capital value of around USD 1 billion.
The funding from private investors will allow private tech companies to postpone from putting their companies up for public offer as they have access to money that will help further growth and expansion.
Farrell further stated that according to Dealogic data22 “blank check” funds had been launched on US stock exchanges up to date for 2017 bringing in a total of USD 6.9 billion in funds.
Palihapitiya will function as the CEO of Social Capital Hedosophia Holdings Corp and onetime CEO of Skype and present partner at Social Capital, Tony Bates will serve on the board of the holding company.

OSL TAKE:

With Sri Lanka’s start-up sector growing rapidly such VC companies will greatly benefit by investing here.

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Article Code : VBS/AT/20092917/Z_7

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