Who is Chamath Palihapitiya & what is this mystical creature
Updated: Jan 23
If you haven't heard this guy's name by now... then you're welcome for the introduction. This article should serve to establish Chamath's throne as our fearless SPAC leader.
Fair warning, if you want a boring Wikipedia article about all of Chamath's endless accomplishments - then go Google his name. Let's start with a sports card intro of the man:
The SPAClords have blessed us with another Elon Musk-esque figure. Someone that thrives on adversity and gets the ball to the endzone... Every. Damn. Time.
I'm not sure about you, but I'm sick of politicians and the endless stream of false promises. I'm sick of celebrities virtue signaling & the cancel culture that it has created. I'M SICK & TIRED OF MEDIOCRITY!
In comes Chamath Palihapitiya. A member of his own club: free thinkers and independent decision makers. Do you know how hard it is to be surrounded by elitist silicon valley billionaires and still preach the truth?
Chamath is a hurricane of fresh air. Literally, he's a beacon for climate change and modernization. Through saving the 🌎, he will become a top 10 richest person in the 🌎... you heard it here 1st. Here's what he's done for you (& you didn't even realize):
1. Chamath made SPACs cool again
From the beginning, Venture Capital and Private Equity were games of the rich. While not it's intention, the SPAC structure allowed the little guys to get involved with the head honchos. Chamath saw this & exploited it for our advantage. He made SPACs for the people, not for the rich.
Think about it... SPACs allow us to invest before the real IPO & trust the titans of industry to cut sweet deals with private companies. Chamath did exactly that and plans to do it atleast 20 more times. His goal is to launch IPOA -> IPOZ, that's 26 SPACs and so far he's only up to IPOF. Here's what he's given us so far (prices as of 1/20/21, all started at $10/share):
IPOA -> SPCE (Virgin Galactic $31.65)
IPOB -> OPEN (Opendoor Tech $29.01)
IPOC -> CLOV (Clover Health $14.20)
IPOD -> Still Searching ($460m cash in trust)
IPOE -> SOFI (Social Finance $24.03)
IPOF -> Still Searching ($1.15b cash in trust)
IPOD & IPOF are still pre-announced SPACs... but they'll come at a 50% premium. That's the cost of tagging along with Chamath.
... & with his massive PIPEs, he gave us these:
MP Materials (MP - $35.55)
Desktop Metals (DM - $24.69)
ACTC -> Proterra ($29.45)
INAQ -> Metromile (18.20)
2. Bitcoin Pioneer aka "Shmuck Insurance"
You read that right. The man supposedly bought $1m when it was $100/coin (currently $36k/coin) in 2013. At one point, he owned 5% of the entire BTC float! Think back to 2013, what were you doing with your $? He called in 2017 that BTC would reach $100k/coin and by 2040 $1m/coin.
Chamath famously called BTC "Shmuck Insurance" because it's those same Shmucks that most of you keep your money with (big banks) that cause all the financial problems in the first place! Take a read of his 2013 Bloomberg Article "Why I Invested in Bitcoin"
3. MAN OF THE PEOPLE: slaps down big tech when they deserve it
Every single one of us is guilty of 'Big Tech Addiction'. From hardware to software, we live in a world where the average screen time of American's is easily 10hrs a day. When are you not using your phone/computer/tv/Peleton/Tesla/Toto Bidet...
You didn't realize but CHAMATH is your guardian angel & calls them out when they overreach. Last week, WhatsApp tried sneakily changing the privacy settings so they could exploit you... and Chamath called them out. He used to be an exec at Facebook (Whatsapp's parent company) and he had the kohonas to stand up to big ol' Mark. Soon after, swathes of users downloaded Signal App (mostly bc of Chamath & Musk in my opinion) and Whatsapp tried to walk back their moves. Signal is an app created by ex-Whatsapp execs that realized they needed a properly encrypted messaging service without the influence of greedy big tech.
When the US Gov tried getting into the San Bernardino shooter's in 2018, all the big tech companies tried aligning with Apple to protect the shooters privacy. With a clear mind, Chamath objectively saw the situation as it was: "I think we’re almost lying to ourselves in pretending that Apple can’t do something that they do every day." Thank you Chamath for seeing straight!
4. He purifies the air you breath in
...with his bare hands (& money)! You see, instead of just complaining that cars are bad and the world is getting hotter, your boy is actually doing something about it..... the capitalistic way! Many, many, many things need to change & trusting the government with that task is like trusting Madoff with your money. In his own words, here's the plan:
The name of his Venture Capital firm is Social Capital, "At Social Capital, our mission is to advance humanity by solving the world’s hardest problems. We believe that empowering entrepreneurs who seek to improve the lives of the people around them is the best way to create more opportunity globally...
Social Capital is not open to new investors."
YOU HEAR THAT GREEDY RICH ELITISTS?! CHAMATH DOESN'T WANT YOUR $$$!
5. He fights for actual equality, not 'brownie points equality'
If anyone is sick of the pandering, it's Chamath. He's constantly building, not tearing down: "We are builders, and when we build things that need to get built, we tend to do the right things and there’s so much more progress."
He doesn't care what you look like, he cares that you're human. How can we better the world if we can't even better ourselves? Chamath wants all of us to become an "exceptional learning organism" and be "often wrong, never in doubt." In simpleton terms, make mistakes - own it - move forward as a better person.
6. In 1 sentence, what other mind blowing things are there to know about this interesting creature?
He was an exec and owner at AOL/Facebook/Slack, he owns 10% of the Golden State Warriors, he's a professional high stakes poker player, he supports immigration reform (he's a living success immigrant success story), and he sees money as an instrument to change.
Bottom line: get off the couch and invest in SPACs already. Stop scrolling through your toxic social media to distract you & make that deposit into your Robinhood. At this point there are 320+ SPACs on the market, 100+ in the IPO pipeline, and 30+ that have announced mergers. If you can't find titans to partner with, then Venture Capital isn't your thing.
At this rate, there won't be any private companies left by the time Chamath gets to IPOZ.
P.S. This blog is picking up steam, help me out by sending it to your coworkers & follow me on Twitter @SPACdaddy. It's not like they're actually 'working from home' anyways...