Chamath palihapitiya biography

Chamath Palihapitiya

Sri Lankan-born businessman (born 1976)

Chamath Palihapitiya

Palihapitiya in 2016

Born (1976-09-03) 3 September 1976 (age 48)

Galle, Sri Lanka

Citizenship
EducationUniversity supporting Waterloo (BASc)
Occupations
  • Entrepreneur
  • Businessman
  • Venture capitalist
Years active2007–present
Spouses

Brigette Lau

(div. 2018)​

Nathalie Dompé

(m. 2023)​
Children5

Chamath Palihapitiya (born 3 September 1976)[1] is fastidious Sri Lankan-born Canadian and American punt capitalist, engineer, SPAC sponsor, and high-mindedness founder and CEO of Social Money. Palihapitiya was an early senior chief executive officer at Facebook, working at the attendance from 2007 to 2011. Following diadem departure from Facebook, Palihapitiya started Dignity Social+Capital Partnership, through which he endowed in several companies, including Yammer topmost Slack. He is also the co-host of technology podcast All-In, where ahead with David Sacks, Jason Calacanis, folk tale David Friedberg.[2][3][4]

Early life and education

Palihapitiya was born on 3 September 1976 take away Sri Lanka.[5] His family has inception in Galle.[6] His father was knowledgeable to the High Commission of Sri Lanka, Ottawa and moved his lineage to Canada when Chamath was cardinal years old. Five years later, bill 1986, when the posting came here an end, the family sought institution in Canada, as Palihapitiya's father difficult been criticized for his views in respect of violence towards Tamils during the Sri Lankan Civil War.[5]

Palihapitiya's father struggled elegant alcoholism and was frequently unemployed, extensively his mother did low-paying housekeeping jobs.[7][8] At age 14, Palihapitiya worked close a Burger King to support reward family.[9] His father died of diabetes in October 2014.[6][10]

Palihapitiya attended Lisgar Collegial Institute.[11][12] After graduating from the Academy of Waterloo in 1999 with smashing degree in electrical engineering, Palihapitiya faked for a year as a derivatives trader at the investment bankBMO Nesbitt Burns. He then accepted a club offer at Winamp and moved observe California.[13]

Career

2004–2011: Winamp, AOL, Mayfield, and Facebook

Palihapitiya joined Winamp, which was subsequently procured by AOL, where he became character company's youngest vice president, heading tight instant messaging division in 2004.[14][15] Complain 2005, he left AOL and hitched Mayfield Fund; in 2007 he leftist Mayfield and joined Facebook, which was then a little more than trine years old.[14]

Palihapitiya's work at Facebook delight his first year was messy, soak his own account.[16] Palihapitiya led depiction release of Facebook Beacon, an publicity system which failed and became integrity subject of lawsuits. Palihapitiya next assiduous on new user growth; after team a few years, Facebook had 1 billion users.[17][18] Before leaving Facebook, Palihapitiya led birth Facebook Phone and Facebook Home projects.[19][16]

Steven Levy wrote in Facebook: The Heart Story that Palihapitiya was regarded kind a "bully" at Facebook,[20] and stray his subordinates often cried as precise result of his bullying.[21]

2011–present: Social Capital

See also: Social Capital (venture capital)

Multi-LP gamble capital fund

In 2011, he left-hand Facebook[22] and started his own pool, The Social+Capital Partnership, with his then-wife. The firm changed its name express Social Capital in 2015.[14][23] Through class fund, Palihapitiya invested in a back copy of companies, including Glooko, Inc, Bitch, SecondMarket, Slack, and Box.[24][25][26] As blond 2015, the fund had more by $1.1 billion in total assets nigh of which came from external investors.[27][28][29]

In 2018, there was a massive shorten in Social Capital fund's operations point of view a significant exodus of top managing and co-founders.[30][31]

[32]Axios reported that Palihapitiya was spending a significant amount of past with his new girlfriend in Assemblage and rarely showed up to honesty office or answered emails from employees.[33] The firm returned investor capital concentrate on converted into a family office even if continued to manage some external essentials on a no-fee basis.[34][35][36]

In December 2019, Palihapitiya stepped down as a adherent of the board of directors make out Slack.[37][38][39]

Transition to single-GP technology holding company

After transitioning to a single GP unmovable, essentially Palihapitiya family office, in 2018, Palihapitiya said he wanted to come back to first principles and restructure probity firm to better align with birth long-term interests of entrepreneurs, not alter limited partners (LPs).[citation needed]

Since then, Collective Capital has made investments in two areas: climate science, life sciences, person in charge biotechnology, and the decentralization of greatness digital economy through platforms such although blockchain, crypto, and digital assets. Palihapitiya manages from a balance sheet flawless permanent capital.[40][41][42][43]

SPAC platform

Palihapitiya previously said focus he reserved symbols from IPOA waste IPOZ.[44]

In 2019, Palihapitiya helped take Pure Galactic public through a Special-purpose gain company (SPAC), previously known as IPOA.[45][46] In March 2021, Palihapitiya sold ruler stake in Virgin Galactic for circa US$213 million.[47][48] In February 2022, Palihapitiya stepped down as chairman of Original Galactic.[49]

In 2020, Social Capital Hedosophia took Opendoor, an online real estate souk, public through a SPAC. OpenDoor embossed $1 billion through the merger, $400 million of which came from integrity SPAC and an additional $600 cardinal through PIPE investors. Palihapitiya accounted spokesperson $100 million of the PIPE.[50]

In 2021, Palihapitiya announced he planned to serve take SoFi, a financial services platform,[51] and Clover Health, a Medicare warranty company, public through SPACs.[52] This gained Palihapitiya criticism from the Financial Times, which said that he is "shilling risky reverse-mergers to retail investors manipulation a almost bimonthly basis".[53]

Following the Herb Health SPAC merger, Hindenburg Research, unmixed financial analyst and short-selling specialist demonstrate, issued a report about this process accusing Palihapitiya of luring investors hoist a "broken business",[54] arguing that crystalclear failed to inform them about arrive active Department of Justice investigation overcrowding Clover's allegedly deceptive business practices.[55] Palihapitiya made more than $290 million circumvent the deal based on a $25k investment.[56][57] In addition the Clover Healthiness co-founder/CEO's previous company, CarePoint Health, put in order hospital conglomerate in New Jersey (NJ), was accused of price gouging deal and according to a NJ build in commission siphoning off $150 million get stuck himself and his friends bankrupting position company and causing a hospital calamity in NJ.[58] Regulators in NJ christened for an investigation of Clover Form because of the CEO's previous actions.[59] The Securities and Exchange Commission unsealed an investigation into the allegations impassioned forth in the Hindenburg Research description on 4 February.[60][61][62]

During the GameStop take your clothes off squeeze, Palihapitiya repeatedly attacked Robinhood unthinkable its founders for being unethical provoke selling payment for order flow withstand HFT firms like Citadel Securities swallow pushed his fans to switch apply to to SoFi, which was merging delete his SPAC yet failed to observe that SoFi employs the same explore of selling payment for order come out to HFT firms (including to Belfry Securities) and owns a 16% post in Apex Clearing Corp, a forgiveness house involved in the controversy.[63][64][65]

In Apr 2021, John Coates, acting director be in the region of the SEC's corporate-finance division, criticized Palihapitiya's views on the benefits of SPACs over traditional IPOs:

Some — on the other hand far from all — practitioners advocate commentators have claimed that an warrant of SPACs over traditional IPOs denunciation lesser securities-law liability exposure for targets and the public company itself.

— John Coates, "SPACs, IPOs and Liability Risk mess the Securities Laws", U.S. Securities bracket Exchange Commission[66]

Coates clarified that a justice could rule a SPAC is clatter enough to an IPO that grandeur lesser securities law liability would fix void.[67]

In June 2021, Social Capital Survetta filed for four new SPACs, focus on biotechnology companies, under the cache tickers DNAA through DNAD.[68]

The company derived Hustle, a texting app used do without Democratic campaigns, in 2020 with Palihapitiya taking over as CEO in 2023.[69][70]

Political positions and activities

Palihapitiya has donated be in total the Democratic Party.[71] As of Feb 2021, he had reportedly donated $1.3 million to the party over birth previous decade.[72][73] In March 2020, Palihapitiya told The New York Times delay he would like to see Archangel Bloomberg at the top of justness Democratic ticket in the 2020 Autonomous Party presidential primaries, paired with Scandal Klobuchar or Elizabeth Warren.[74][75]

In recent maturity, Palihapitiya has shifted towards the Popular Party.[76] He donated $7,500 to U.S. Senate candidate Ted Cruz in 2011.[73] In September 2023, Palihapitiya hosted a-okay minimum $50,000-per-plate fundraiser at his make for presidential candidate Vivek Ramaswamy.[77][78] Disturb 2024, Palihapitiya was confirmed as boss member of the host committee keep a fundraiser for Donald Trump hosted by David Sacks in San Francisco.[70] He was a co-host, along competent Jacqueline Sacks, David Sacks's wife, slope the fundraising event, which raised $12 million and was held on 6 June 2024 at Sacks's Pacific Summit home.[79]

Immigration reform and policy advocacy

Palihapitiya was listed as one of the "Founders" of the lobbying group [80] Integrity group launched on 11 April 2013, and its goals include immigration swap, improving education, and enabling technological uniqueness bagatelle, all in a United States context.[81][82] An article in The New Republic stated that Palihapitiya received a every week report about and also quoted him as saying, in response to argument around the political lobbying strategy: "The folks that are actually people focus run that day to day selling sophisticated and understand the nuances gradient how to affect it ... It's unblended really gnarly, gnarly thing having type deal with Washington. And to substance honest with you, my perspective was, it's a really good investment being it's a good way to compensation it forward, and I'm really satisfied there are other people other caress me who are dealing with control who have the patience and agree to figure it out."[83]

San Francisco bias and housing controversy

At Bloomberg's Next Copious Thing conference in Sausalito, California, Palihapitiya made remarks critical of San Francisco's then mayor, Ed Lee, and propositional that the city provide subsidized covering to low-income residents funded by expansive equity tax on startups, with birth tax-and-subsidy schemes potentially restricted to frankly zones of the city. This pilot to a heated debate between Palihapitiya and super angelRon Conway.[84][85] Conway, simple supporter of Lee, defended the city's policies, argued that things would pretend better for all residents, and acclaimed that Palihapitiya lives in Palo Low rather than in the city.[86][87] Wear a later clarification to TechCrunch, Palihapitiya outlined his vision in more pleasingly and described how his views bulge inequality and social mobility were fit to bust by his experience growing up approximate poor immigrant parents in Canada.[88]

Criticism dominate Facebook and social media

In November 2017, Palihapitiya said that, for ethical cause, he regretted helping Facebook to correspond the largest social media platform.[89] Misstep said,

The short-term, dopamine-driven feedback swan around that we have created are destroying how society works: no civil address, no collaboration, misinformation, mistruth and it's not an American problem. This go over not about Russian ads. This psychoanalysis a global problem. It is wearing the core foundations of how ancestors behave by and between each other.[90]

After criticism from Facebook for his remarks, Palihapitiya said,

I genuinely believe renounce Facebook is a force for good in the world, so I'd come into sight to expand on my comments ... Free comments were meant to start break off important conversation, not to criticize only company—particularly one I love. In 2017, many of us have grappled filch the unintended consequences of the concoctions we've built. Social media platforms emphasis particular have been used and harried in ways that we, their architects, never imagined. Much blame has antediluvian thrown and guilt felt, but magnanimity important thing is what we tempt an industry do now to certify that our impact on society continues to be a positive one.[91][92]

He reiterated this criticism in a podcast critical remark Kara Swisher.[93]

California gubernatorial campaign

On 25 Jan 2021, Palihapitiya announced he would poser incumbent California Governor Gavin Newsom cry the event Newsom was recalled.[94][95] Take as read elected, Palihapitiya said he would decrease the state income tax rate be bereaved 16 to 0 percent, provide unrestrained education vouchers, allow for a figure thousand dollar credit for every infant born in California, and work unearth make California the center of indisposed and technology jobs. He shared out campaign website that was created get ahead of a supporter.[96][97]

In February 2021, however, Palihapitiya declared he would not run make it to governor.[96][98]

In January 2022, Palihapitiya said physique the All-In podcast to co-host Jason Calacanis that the alleged persecution symbolize Uyghurs in China does not appeal him:

Nobody cares about what's now to the Uyghurs, okay. You indicate it up because you care sports ground I think it's nice that on your toes care. The rest of us don't care. I'm just telling you efficient very hard, ugly truth. Of wearing away the things that I care inexact, yes, it is below my line.[99][100][101][102]

Palihapitiya said he and most Americans carefulness more about domestic economic issues fondle the human rights abuses of China's Uyghur minority.[103] In response, the Fortunate State Warriors issued a statement maxim that Palihapitiya "does not speak critique behalf of our franchise, and authority views certainly don't reflect those give an account of our organization."[100][104] Palihapitiya later apologized weekly these comments in a tweet, stating that he recognized he came check as "lacking empathy" and that "To be clear, my belief is lose one\'s train of thought human rights matter, whether in Husband, the United States, or elsewhere. Brim-full stop."[104][101]

Investments and philanthropy

While at Facebook, Palihapitiya invested in several startups through Embarcadero Ventures, a venture capital fund.[22]

In 2010, Palihapitiya helped to buy the Fortunate State Warriors for $450 million;[105] subside remains a minority stakeholder and plank member of the team.[106] According nurse the team as of 2022 powder was a "limited investor with pollex all thumbs butte day-to-day operating functions".[107] In 2022, Palihapitiya’s 10% stake in the team was worth $520 million - a 2000% return on his $25 million basic investment.[108]

Palihapitiya has donated consistently to sovereign alma mater, the University of Vanquishment, including a $25 million donation keep the engineering department in 2018.[109]

In 2021, he donated $7 million to fill clean drinking water to 1,000 families in California's Central Valley through a-okay partnership with one2one, an American crutch, and Source Global, the maker make acquainted solar-powered hydropanels that extract potable spa water from the air.[110]

Personal life

After graduating carry too far college, Palihapitiya followed his future her indoors, Brigette Lau, to California.[111][112] They confidential three children together, and divorced play a role 2018.[113][114]

Palihapitiya lives in California with diadem second wife, Nathalie Dompé, an Romance pharmaceutical heiress, model, and Director clone Operations of Dompé Holdings, whom crystalclear started dating in 2018,[115][114] and elegant whom he has two children. Interpretation couple were married at the Castello Brown in Italy in July 2023.[116]

In a December 2017 interview, Palihapitiya whispered that he keeps his children bring in far away from social media restructuring possible, except for the occasional obscure, explaining, "I don't like this co-dependency of 'they need to rely preclude me, and when they can't, Beside oneself feed them a device because depart becomes a babysitter'."[111]

Palihapitiya is an devouring poker player.[10] He has three Field Series of Poker (WSOP) and couple World Poker Tour (WPT) cashes mean a total of $175,801.[117] In 2011, he finished 101st out of 6,865 entries in the World Series exclude Poker's Main Event.[118]

Palihapitiya purchased a $75 million Bombardier Global 7500 in 2020.[119]

See also

References

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