Jan 12, 2023 - Economy

Scoop: Chamath Palihapitiya narrows his fundraising plans

Chamath Palihapitiya

Photographer: Mark Kauzlarich/Bloomberg via Getty Images

Social Capital, the VC firm led by Chamath Palihapitiya, has narrowed the scope of its new fundraise, according to a letter sent to prospective investors and obtained by Axios.

Details: The new plan is to size Fund V at around $1 billion with a focus on early-stage deals, versus prior plans to raise significantly more and to also back growth-stage companies and special opportunities.

  • Palihapitiya will commit nearly 20% of the total, likely including contributions of shares in companies backed by Fund IV (in which Palihapitiya was the sole LP).
  • Fund terms are a 2% management fee (1.75% for first close, scheduled for March) and a 30% carry.

Per the letter: "While our early stage portfolio continued to thrive, we were disappointed in the broader growth stages of technology investing and their interest in valuation sobriety."

Go deeper: Watch the Axios BFD conversation with Palihapitiya:

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