SoFi to Become Publicly-traded via Merger with Social Capital Hedosophia

January 11,2021

SoFi, ADIT-News, Q1-2021

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.

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 for future updates.

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

-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.

-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.

Julie Klugman

SOURCE Adit Ventures

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