Social Capital (venture capital)

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Social Capital
Private
IndustryPrivate equity
Founded2011
FounderChamath Palihapitiya
HeadquartersPalo Alto, California, United States
ProductsVenture capital
Total assets$1.2 billion
WebsiteOfficial website

Social Capital, formerly known as Social+Capital Partnership, is a venture capital firm based in Palo Alto, California. The firm specializes in technology startups, providing seed funding, venture capital and private equity.[1][2]

The firm has "stood out strategically", according to Fortune, "with a focus on...healthcare, financial services and education...when those fields were...neglected by the VC community."[1]

History[edit]

Social Capital was founded in 2011 by Chamath Palihapitiya, who had previously worked at Facebook.[1] Mamoon Hamid and Ted Maidenberg also joined the firm that year as General Partners.[3][4]

In January 2015, Fortune reported that Kleiner Perkins Caufield & Byers was in acquisition talks with Social Capital,[5] but the acquisition reportedly fell through.[6] In May 2015, Social Capital raised $600 million in their third and largest venture capital fund.[1] PayPal cofounder Peter Thiel praised Palihapitiya's approach, and as of 2015 served as a limited partner.[7][8]

In 2018, then-partners Arjun Sethi, Jonathan Hsu and Ted Maidenberg left the firm to co-found Tribe Capital.[9]

Investments[edit]

Social Capital invested in Yammer in 2011, which was later bought by Microsoft.[7] In 2012, the firm invested in Impermium, which was acquired by Google in 2014.[10] Also in 2012, the firm was a venture investor in InstaEDU, acquired by Chegg in 2014. Social Capital led a round of Series B funding for Wave Accounting.

In May 2015, the firm was a leading investor in a funding round for Slack Technologies.[11]

In 2018, the firm co-led a $22.7 million round of funding for SFOX, a cryptocurrency trading platform, alongside former peers at Tribe Capital.[9]

References[edit]

  1. ^ a b c d Rao, Leena. "Is Social+Capital's Chamath Palihapitiya the future of venture capital?". Fortune. Fortune. Retrieved 9 October 2015.
  2. ^ de la MERCED, MICHAEL J. "Silicon Valley Investment Funds Still Lack Diversity, Study Shows". New York Times. New York Times. Retrieved 23 October 2015.
  3. ^ Arrington, Michael (2011-06-03). "Facebook VP Chamath Palihapitiya Forms New Venture Fund, The Social+Capital Partnership". TechCrunch. Retrieved 2013-04-23.
  4. ^ Kim, Eugene. "These Two Charts Explain Why Kleiner Perkins Wanted To Buy This Four-Year-Old VC Firm". Business Insider. Business Insider. Retrieved 9 October 2015.
  5. ^ Primack, Dan (January 26, 2015). "Exclusive: Kleiner Perkins tried to 'acquire' Social+Capital Partnership". Fortune. Retrieved July 8, 2015.
  6. ^ Lynley, Matthew (March 31, 2015). "Why The Kleiner Perkins-Social+Capital Deal Fell Apart". TechCrunch. Retrieved July 8, 2015.
  7. ^ a b Bennett, Drake (2012-07-26). "Social+Capital, the League of Extraordinarily Rich Gentlemen". Retrieved 2013-04-23.
  8. ^ Bennett, Drake. "Social+Capital, the League of Extraordinarily Rich Gentlemen". Bloomberg. Bloomberg. Retrieved 9 October 2015.
  9. ^ a b Verhage, Julie (16 August 2018). "Former Social Capital Partners Make First Investment Since Exit". Bloomberg L.P. Retrieved 5 February 2019.
  10. ^ Shontell, Alyson. "That Big Round Ex-Yahoos Were Raising? It Closed And Here Are The Details". Business Insider. Retrieved 26 August 2015.
  11. ^ Jeff Bercovici (December 2015). "Slack Is Our Company of the Year. Here's Why Everybody's Talking About It". Inc. Retrieved February 7, 2018.

External links[edit]