Chamath Palihapitiya

Olivia Michael | CNBC

If the government approves further stimulus funds, they should go to individual consumers and small businesses, venture capitalist Chamath Palihapitiya said Wednesday.

In a searing diatribe against the troubled sector, the CEO of Social Capital expanded on comments he made earlier in the year to CNBC in which he said airlines should not be bailed out because they are so poorly managed.

Palihapitiya said that before the coronavirus pandemic, the companies already were doing “the most absolutely horrid and idiotic form of capital allocation you could imagine.”

“Not a single extra dollar should go to these companies,” he added.

Among the poor decisions he cited were not investing in research and development, saving or putting more resources into their workforces. Instead, they focused cash on share repurchases and inflating stock prices.

“This has been happening for the last 15 or 20 years,” Palihapitiya said

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Chamath Palihapitiya

Heidi Gutman | CNBC

Three blank-check companies backed by venture investor Chamath Palihapitiya are looking to raise a total of $2 billion through initial public offerings, regulatory filings showed on Friday.

A blank-check company backed by Palihapitiya merged with Virgin Galactic Holdings in October last year, while another one founded by him is set to merge with SoftBank Group-backed Opendoor Labs.

The new companies, called Social Capital Hedosophia Holdings IV, V and VI, are looking to raise up to $350 million, $650 million and $1 billion, respectively, by selling units — made up of stocks and warrants — on the New York Stock Exchange.

A blank-check company, also known as a special purpose acquisition company (SPAC), uses capital raised through an initial public offering to buy a private company, usually within two years. The deal then takes the private company public.

Other high-profile investors such as Bill Ackman

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Any additional coronavirus relief from Congress should focus primarily on giving money directly to Americans, venture capitalist Chamath Palihapitiya told CNBC on Tuesday.

“We know this economy is always consumer led. It’s consumption that drives growth in the United States. It drives jobs and capital allocation and the more money in individuals’ hands the better they can be to support businesses, buy different products,” the founder and CEO of investment firm Social Capital said on “Squawk Box.” “That’s how we grow ourselves out.”  Consumer spending accounts for about two-thirds of U.S. economic activity.

While lawmakers in Washington and the White House remain deadlocked on stimulus negotiations, Palihapitiya said he believes there is a pain in the U.S. economy that needs to be addressed as it climbs out of a coronavirus pandemic-induced recession. 

“Unlike other recessions, where you don’t know where the bottom was, this recession was actually pretty easy …

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FILE PHOTO: Chamath Palihapitiya, Founder and CEO of Social Capital, presents during the 2018 Sohn Investment Conference in New York


  • Opendoor is in advanced talks to go public via a merger with Social Capital Hedosophia Holdings Corp. II, a “blank check” company, or SPAC, led by billionaire investor Chamath Palihapitiya, Bloomberg reported on Thursday.
  • Opendoor is a property technology company that directly buys homes from sellers, makes some improvements to the homes, and then resells them.
  • While the transaction is not yet finalized and the deal can fall apart, Bloomberg said, investors are nonetheless bidding shares of the SPAC higher by as much as 7% in Friday trades.
  • Visit Business Insider’s homepage for more stories.

Opendoor, a property technology company, is in advanced talks to go public via a merger with Social Capital Hedosophia Holdings Corp. II, Bloomberg reported on Thursday.

Social Capital is a “blank check” company,

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Reuters

  • Chamath Palihapitiya explained in a Tweet on Monday why he’s investing in 3D printing company Desktop Metal. 
  • The venture capitalist said that manufacturing is entering its “2.0 era,” where tools and machinery are replaced by printers. Materials and parts will create an ecosystem that can “increasingly make anything.” 
  • He said Desktop Metal is the “leader” in this new era of manufacturing and already has distribution deals in over 60 countries.
  • Visit Business Insider’s homepage for more stories.

Chamath Palihapitiya helped lead a $275 million investment to take Desktop Metal, a 3D printing company, public via a SPAC. He called the company a “leader in manufacturing 2.0.”

The venture capitalist tweeted on Monday that Desktop Metal is leading the way in “the future of manufacturing” for many industries. The company is involved with additive manufacturing, which he described as “making complex parts for industrial production.” 

Additive manufacturing is entering

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