Valley VCs look to create a backdoor to public markets for startups

Silicon Valley startups. Photo: Reuters

Silicon Valley venture capitalists are looking to create a publicly traded fund with a single focus: investing in mature startups to provide them with a way to reach a wider group of investors while skipping some steps involved with an initial public offering.

The vehicle, Social Capital Hedosophia Holdings Corp., plans to raise cash from investors in an IPO and then invest the cash in one or more late-stage companies, according to a securities filing Wednesday. The fund, which is what’s known as a special purpose acquisition vehicle, will be able to set the value of its holdings and let backers trade its shares without the private companies having to go through their own IPOs. The value of the shares then fluctuate based on market demand.

A spokeswoman for the fund declined to comment, citing U.S. Securities and Exchange Commission rules. The Wall Street Journal earlier reported the news.

Chamath Palihapitiya, managing partner of venture firm Social Capital and an owner of the Golden State Warriors basketball team, will serve as the new entity’s chief executive, while Ian Osborne, co-founder of the venture firm Hedosophia, will serve as president. Adam Bain, the former chief operating officer of Twitter Inc., will become a director.

Also Read:

VCs bullish on SEA’s ecosystem, say best is yet to come for region’s startups

India plans to overhaul $1.5b startup fund

Bloomberg

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.