Adit Ventures Proud SoFi Investor Excited for SoFi's Plan to Become Publicly-traded via Merger with Social Capital Hedosophia

Rhea-AI Summary

SoFi plans to go public through a merger with Social Capital Hedosophia Holdings Corp. V (NYSE: IPOE), valuing the company at an equity value of $8.65 billion post-money. The merger is supported by a PIPE led by Chamath Palihapitiya, contributing $275 million, with additional institutional investments totaling $950 million. This transaction aims to expand SoFi's footprint in consumer-focused financial technology, potentially enhancing its growth and market share in a competitive landscape.

Positive

• Transaction values SoFi at $8.65 billion post-money, indicating strong market confidence.
• PIPE led by notable investors signals strong institutional support.

Negative

• None.

NEW YORK, Jan. 11, 2021 /PRNewswire/ -- SoFi, A Leading Next-Generation Financial Services Platform, Announces Plans to Become Publicly-traded via Merger with Social Capital Hedosophia.

SoFi has entered into a definitive agreement with Social Capital Hedosophia Holdings Corp. V ("SCH") (NYSE: IPOE), a publicly traded special purpose acquisition company, to bring a major consumer-focused financial technology business to the public markets. The transaction values the Company at an equity value of $8.65 billion post-money.

The PIPE is being led by Chamath Palihapitiya, Founder and CEO of SCH, and Hedosophia, who are together contributing $275 million; top-tier institutional investors comprise the remaining $950 million of the PIPE include funds and accounts managed by Altimeter Capital Management, Baron Capital Group, BlackRock, Coatue Management, Durable Capital Partners LP, and Healthcare of Ontario Pension Plan (HOOPP).

Below is the link to SoFi's 1/7/20 press release to learn more.

https://www.sofi.com/press/sofi-plans-to-go-public

About Adit Ventures:

Adit Ventures is a venture capital firm with offices in California, Florida, New York, Texas, and Utah. An "Adit" is an entrance to a mine and serves as an anagram for the firm's services, since it provides Access, Diligence, Insight and works with Trusted partners across the United States and around the world. 

Its business model focuses on purchasing shares from early-stage investors or employees seeking liquidity before the company has a liquidity event. Adit's investment objective is 3x return of capital within a 3-5-year time frame. Adit buys both primary and secondary shares on behalf of investors from a global network of relationships cultivated over their 150 years of principal investing experience.

Adit seeks to capitalize on long-term secular trends in the global economy where they see dynamic areas of growth. It is in these sectors Adit sees the best opportunities for long term capital appreciation and to make a positive impact on the world by improving quality of life, while generating a healthy return on our invested capital in alignment with their investors & principles.

Current sectors of interest include AI & Machine Learning, Big Data, Cybersecurity, Defense, Educational Technology, FinTech, Health Tech, IoT, Life Sciences, Media, Shared Economy and Space. Portfolio companies include Airbnb, Astrocast, Cohesity, Decision Sciences International Corporation, Esme Learning, Klarna, Netskope, SoFi, SpaceX and Turo among others.

Please visit www.aditventures.com for future updates.

Adit Ventures uses a 10-step investment process incorporating its proprietary research on both quantitative and qualitative factors.

Quantitative:
-Valuation at entry is a critical discipline, as this is one thing we control.
-Revenue growth rate drives future valuation, so is a key element to Adit.
-Margins and cash flows are vital to an enterprise's success, and drive valuation.
-Scalability of business across various markets is a big factor in the valuation of any business.
-Profitability: A clear path to profitability is essential to any investment.

Qualitative:
-Is it a good business model, in a good sector with long term secular tends driving it?
-Is there a good management team, with depth and experience in meeting challenges, competitive   threats and executing its goals?
-Does it have a good capital base, board of directors/investors and well-regarded savvy Venture Sponsors? 
-Does the business adhere to fundamental ESG principles with character and integrity in its practice?
-Will the business make a difference by adding value for its customers, its employees and the community it serves, as well as its shareholders?

Adit has invested in some of the world's leading companies with exits in Airbnb, GoPro, Lemonade, Palantir, SharesPost, Spotify, Snap and Lyft.

Contact:
Julie Klugman
info@adit.vc 
www.aditventures.com

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SOURCE Adit Ventures

FAQ

What is the equity value of SoFi after the merger with IPOE?

The equity value of SoFi after the merger with Social Capital Hedosophia Holdings Corp. V (IPOE) is $8.65 billion.

How much capital is being raised in the PIPE for the SoFi merger?

The PIPE for the SoFi merger is raising a total of $1.225 billion, with $275 million from Chamath Palihapitiya and $950 million from other top-tier institutional investors.

What is the strategic importance of SoFi going public through a SPAC?

Going public through a SPAC allows SoFi to access capital markets more swiftly, facilitating its growth in the competitive financial technology sector.

Who are the primary investors in the PIPE for the SoFi IPO?

Primary investors in the PIPE include Chamath Palihapitiya, Altimeter Capital Management, Baron Capital Group, BlackRock, Coatue Management, Durable Capital Partners LP, and Healthcare of Ontario Pension Plan (HOOPP).