Chamath Palihapitiya explains why SPAC’s are awesome

Interview date: June 2020.

Chamath Palihapitiya is a Sri Lankan-born Canadian-American venture capitalist and the founder and CEO of Social Capital.

Prior to the Social Capital Partnership, Palihapitiya was the longest tenured original member of Facebook's Senior Management team. He served in various roles during his four-year stint at Facebook, including Vice President of User Growth, Mobile and International at the conclusion of his tenure in June.

A resident of Palo Alto, Palihapitiya joined Facebook in 2007 and was a major force in the launch and incredible growth of the social media website, overseeing monetization products, Facebook Platform, managing the team responsible for its mobile products and, ultimately, helping increase the user base to more than 750 million individuals worldwide.

He attended the University of Waterloo in Ontario, Canada, where he graduated First Class Honors in Electrical Engineering.

DISCLAIMER:
The material and information presented in this video is for entertainment, and general information purposes only.
You should not rely on any of the information presented as a basis for making any investment decisions.
You should consult with an attorney or other professional to determine what may be best for your individual circumstances.

[InfiniteQuasars]

Spacs are good for him (just the management team), for rest of spac investors it will be a raw deal.

[alexanderanghel]

They are awsome for him because he makes tons of free money off the mergers regardless of the SPACs performance.

[jeremyreinhold]

Ty for your awesome work mr spac man.

I made 90% on your Sofi deal so far.

[PureBadBreath]

SPACs arent new, they've just got a reboot with the market exorbitance with monetary support. Going public with a SPAC is less transparent, less protection for new public investors, and early investors gets the gravy while the rest become bag holders.

[tadman]

What is not said here is that they get a substantial cut of the business as a "finder's fee" that then gets passed on to the common shareholders. Now, if they do a really good job negotiating the equity price you get for what you give the company then that is great, but people should just remember that not all SPACs are created equal

[connorgalloway]

Yes spac the way you can take companies with terrible fundamentals public without any regulation and charge rediculous fees. What a great guy ripping off the people for his own good😂😂

[ecesperante]

Chamath is knowledgeable, but not on Crypto and Blockchain. Just saw a really recent video where he said Ethereum doesn't matter and he never heard of DeFi. DeFi was at the center of the industry in 2020 which makes me think he isnt up to date with crypto.

[prajitvishnukarthik]

On my point of view, besides investment, technology matters to bring new product to improve the humanity, customers easiness. And that's why entrepreneurs are present all over the world. And here SPAC makes a product where the cash needed startups can get money in lieu of lot of difficulties while in making red herring in there bourses.

[jacob.brandw]

Right, right, right. Companies aren’t going public due to their ability to receive private financing, which in turn allows private investors to benefit and common investors to have less of an opportunity of benefitting. However, there’s still plenty of opportunity in the public markets for the common investors.

[vidcreatorlondon]

What about governance or does that not matter?

[hiddencompounder]

Are SPACS as well regulated/scrutinised as companies who go through IPO’s?

[grantguy]

Spac is awesome if the right guy such as this guy doing it.

[imawesome]

He’s making a fortune flipping companies.
People need to wise up and not follow this creep

[Kenbomp]

Probably goes the basics, good solid companys

[katek]

If you don’t want to hold for long term spac “hypothetically speaking” Can you buy these SPACs for 10-11$ and sell them for 12-13$... or are these spacs buys locked and can’t be sold the next day for an average investor ?

[bryanseamans]

Cryptocurrency /forex trading is a big chance to make money nowadays, if you can't see that at this point is time you learn more about it

[friesNcoke]

I've been wondering about this. Brilliant. Thank you!

[xdude]

Chamath also gets nice warrants that cannot redeemed for 5 years. In a high growth company, for chamath it allows essentially a leverage of of 1:100. Not bad too shabby is it?

[RM-eugi]

SEC regulation (driven by wall st establishment) hinders the companies he’s talking about from going public tho.

[tomw]

5:43 so much for blockchain decentralization.. mb some of those snarky know-it-all kind of hodlers can conduct civilized discussion regarding some potential risks around it as all good investors should do