The Daily Dish (1/8/21)

Welcome to the Daily Dish. Every morning in your inbox subscribers receive some Dishes that we find interesting and we think that you should know more about.

We’ll try to lob ‘em up to you in a simple, clean format that you can read in 5 minutes before the market opens. (Trust me, we know what it’s like to wake up at 9:23am).

Here’s the first assist 👇

Fintech start-up SoFi to go public via SPAC backed by Chamath Palihapitiya

SoFi Stadium, a Los Angeles Pigskin Palace 26 Years in the Making
  • Online finance start-up SoFi is set to go public by merging with a blank-check company run by venture capital investor Chamath Palihapitiya, the companies announced Thursday.The merger with Palihapitiya’s SPAC, Social Capital Hedosophia Corp V $IPOE, will value SoFi at $8.65 billion. SoFi, short for Social Finance, was last valued at $5.7 billion in private markets, and has raised cash from venture capital giants such as SoftBank and Peter Thiel, according to PitchBook. 

  • Palihapitiya, founder and CEO of Social Capital Hedosophia V $IPOE, is leading a $1.2 billion private investment in public equity, or PIPE, that includes $950 million in investments from BlackRock (BLK), Altimeter Capital Management, Baron Capital Group, Coatue Management, Durable Capital Partners, and Healthcare of Ontario Pension Plan. Palihapitiya, along with Hedosophia, a London venture capital firm led by Ian Osborne, are also contributing $275 million, a statement said.

  • SoFi’s consumer offering is augmented by its ownership and independent operation of Galileo, one of the leading providers of critical technology infrastructure services, including customer-facing and back-end capabilities, to fast-growing financial services providers. Galileo has approximately 50 million accounts on its platform.

    SoFi’s consumer and enterprise businesses are highly complementary, enabling SoFi to provide faster product innovation and speed of service to both SoFi members and the customers of Galileo’s clients. SoFi has experienced rapid acceleration with this strategy and has achieved six consecutive quarters of year-over-year member growth.

    SoFi received preliminary, conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) for a national bank charter in October 2020. If SoFi obtains final regulatory approval to own a bank, it would have a lower cost of funds to further support SoFi’s growth.

Crypto Exchange Bakkt Nears Merger With Victory Park SPAC

What Is Bakkt? A Global Ecosystem for Regulated Digital Assets
  • Firstly, just wanted to let you all know Bitcoin $BTC has now breached $41,000

  • Bakkt, the cryptocurrency platform majority owned by Intercontinental Exchange Inc., is in advanced talks to go public through a merger with blank-check firm VPC Impact Acquisition Holdings $VIH, according to people with knowledge of the matter. The transaction is set to value the combined entity at more than $2 billion, and an announcement may come as soon as next week, said the people.

  • Last year, Bakkt raised $300 million in capital from ICE and other investors, and acquired Bridge2 Solutions, a provider to loyalty programs. The company in 2019 launched a fully-regulated Bitcoin futures and option market.

    Read more: Novogratz’s Galaxy, Bakkt Start ‘White-Glove’ Bitcoin Service

    Bakkt is led by interim Chief Executive Officer David Clifton, ICE’s vice president of M&A and integration. Outgoing U.S. Senator Kelly Loeffler was its founding CEO. Her successor, Mike Blandina, left for JPMorgan Chase & Co. last April.

  • Meanwhile, despite the mammoth valuation, Bakkt has remained a humble player in the broader crypto market. It started operations last year—after several delays—with its innovative physically-delivered daily and monthly Bitcoin futures, and as per analytics firm skew, traded over $93 million yesterday. The amount, while significant, is small compared to crypto players like Binance or Bybit, which traded over $29 billion and $12 billion respectively on Thursday. Even the Chicago Mercantile Exchange (CME), a legacy exchange, traded far more—$3.8 billion as per skew data.

Fifth Wall aims for proptech-focused SPAC

VC Firm Fifth Wall Ventures Launches Real Estate Tech Accelerator - Inman
  • Venture capital firm Fifth Wall has ambitions to raise funds through a special-purpose acquisition company, Bloomberg reported. The firm will reportedly seek to buy a company in the proptech sector. Investors in the firm include real estate companies such as CBRE, Cushman & Wakefield and Toll Brothers, and Barry Sternlicht-led Starwood Capital.

  • Launched in 2016, Fifth Wall was launched by Blackstone Group alumni Brad Greiwe and Brendan Wallace. It has $1 billion under management and has backed companies including Opendoor, States Title, VTS, Industrious and Smart Rent.

    After raising a $212 million inaugural fund in 2017, Fifth Wall closed a $503 million protech fund — the largest of its kind — in July 2019. It has since closed a $100 million retail fund and is raising a $200 million carbon impact fund and $118 million European proptech fund.

If you enjoyed today’s dish please gift it to a friend (or Chamath) 👇

There’s No I In Trade

My goal is to create a community where people can educate themselves through the world of investing. I can’t do that alone, we need to build this community together. So tell me what you’re loving, tell me what you want to see more of tomorrow.

Disclaimer: This is not financial advice and should not be interpreted as such. I am not a financial advisor. I may currently own or have owned many of the SPACs mentioned above – but that does not mean I am invested now. My investing method is highly risky swing trading which means I am constantly in and out of positions. Please do your own research or hit up the #SPACsquad on Twitter to learn more about SPACs.


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