Chamath is becoming a legendary investor who thinks different than the larger institutions and money managers in the world.
He thinks more like an innovative entrepreneur and less like your typical venture capitalist. After listening to dozens of interviews with Chamath, I've come to apply a lot of his investing principles in my own life.
The SPAC craze is something that Chamath reinvigorated last year by taking Virgin Galactic public.
SPAC stands for special purpose acquisition company and Chamath has dubbed this "IPO 2.0".
In essence, the general idea is that IPOs tend to make the bankers rich and rob founders of valuation. Bankers do their financial engineering to ensure they get as rich as possible which typically leaves a lot of margin on the table which Founders have to give up.
ICOs are another interesting piece to the next generation of IPOs, but it will be a while before we see ICOs hit the main main stream.
For now, Chamath's ideas for SPACs is doing well as they seem to be happening left and right these days.
His latest deal is with Opendoor - which he is now taking public through one of his SPACs.
"The deal values Opendoor at $4.8 billion — nearly equal to its 2019 revenue."
Chamath claims this is his next 10x idea and I'm curious to see how it plays out. Clearly the world is moving toward more digitization and Opendoor seems like a company leading on that front.
SPACs are going to play out one way or the other. From every angle, it seems they're better for the founders and worse for the banks - and that is something that I will gladly get behind.