Sept 10, 2018 (LBO) – Palo Alto-based venture capital firm Social Capital is “imploding,” according to a report in Axios by the venture capital reporter Dan Primack.
The firm raised more than 1 billion US dollars and has invested in unicorn startups like Slack, SureyMonkey and now-public Box.
The report, however, says partners are deeply unhappy with the way things are being run in the firm which was founded seven years ago by former Facebook executive Chamath Palihapitiya.
“Social Capital appears to be done, at least as a major venture capital investor,” Primack said.
“The firm’s leadership team is “hemorrhaging” its top talent, and its hedge fund is shutting down.”
The reporter says Palihapitiya is regularly absent from the Social Capital offices, instead of spending much of his time in Europe.
“Palihapitiya in February filed for divorce from his wife Brigette Lau, a partner with Social Capital and co-owner of its management company,” Primack wrote.
“Soon he began showing up less often to the office, with many employees speculating that he was in Europe with his new girlfriend, an Italian pharmaceutical executive.”
Primack points out the exodus of talent from the firm, including co-founders Mamoon Hamid and Ted Maidenberg and says some of the firm’s limited partners are getting ready to meet Palihapitiya to finding out what’s going on.
Read the full report here.
Social Capital, one of the most closely-watched VC firms in Silicon Valley, has removed the team page from its website after bleeding 7 partners over the summer. https://t.co/NSrIih46dA pic.twitter.com/xaVH5IhLav
— Melia Russell (@meliarobin) August 31, 2018