Jan 12, 2023 - Economy & Business
Scoop: Chamath Palihapitiya narrows his fundraising plans
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: