A person with an intrinsic ability to cling to large amounts of information, and an amalgam of inherent, intellectual and prime expertise. Though he is not a household name outside the venture capital world, but if you belong to it, you must be extremely familiar to the man I am talking about, Mr. Chamath  Palihapitiya. You know him as a venture capitalist and the founder and CEO of Social Capital. But what you didn’t know, we are here to present:

1.The young Chamath

Born in Sri Lanka and brought to Canada at the age of 6, the Initial life of Chamath was not that easy and privileged. His father faced perpetual unemployment and his mother had to earn livings doing all sorts of household work. He experienced miseries as many as sleeping on only a mattress in a living room. When it was time to go back to Sri Lanka, his father applied for refugee status. Chamath worked at Burger King at the age of 14 and his family lived on welfare.

After completing his college, he followed his girlfriend and present wife to California.

 

2.The Mayfield venture

Chamath had worked as a principal of the Mayfield firm, one of the country’s oldest venture firm. Though he seemed quite confident from outside for a long career on the sand hill road, where numerous famous venture capital firms from the silicon valley are settled, he didn’t draw out. He was close to two of his partners but with the rest of them, he felt quite dislocated. He has also been investing from the past few years through a fund called Embarcadero ventures.

 3.The unconventional activist investor

According to Palihapitiya himself, he is an activist investor and is indifferent from the traditional venture capital template. A broken system prevails in the market, which he thinks is ruined by short term thinking and lack of liquidity and is determined to overhaul it.

Chamath  himself once stated, “ venture capital firms tend to focus on having large amount of assets under management and collecting fixed fees that creates perverse incentives because you are focused on deploying as much capital as fast as possible. I want to be ANTITHETICAL to all of that.”

4.The ardent poker player

Mr. Chamath  is a cut-throat poker player.

He has taken part in three World Series of Poker (WSOP) and two World Poker Tour (WPT) in which he won a total of $175,801. In 2011, he came in 101st in the 42nd World Series of Poker tournament.

According to Business Insider, he hosts one of Silicon Valley’s most popular poker events at his home in Palo Alto with some of the big name players.The regular attendees of the game include David sacks (Hammer founder), inside.com’s Jason Calacanis and Phil Hellmuth from the world series of poker. The reason behind hosting the game at home was to gather 9 or 10 of the most competitive people of the Silicon Valley and play poker. 

5.The unique features of his venture capital firm

You came across how Mr Chamath ’s logic and intentions are different from the typical venture capitalists in space. Even these uncanny ways have created a venture capital firm that is completely discrete from its counterparts. Social Capital works like an investor collective.  Instead of a basic venture capital firm, which consists of numerous managers and a forbearing group of corporate investors who fund it, Social Capital has finite partners with Chamath as their leader who act as venture-capitalists-on-call, that means they gather occasionally to analyse and guide start-ups. Even Mark Zuckerberg is among the list Who frequently visits for conceptualizing investment ideas.

 6.The making of Social Capital firm

Mr. Palihapitiya, the activist investor, gathered together $300 million for his Social+Capital partnership startup. The person known to start his career as a  venture capitalist at the youngest age of 26 in the AOL history also has put the greatest amount in the fund’s capital I.e. almost $60 million or you can say 20% of the total capital. His contribution to the Firm can be chronicled more precisely as how cleverly he selected the investors for the fund. He selected an early Facebook employee and founder of question and answer site ‘quora’ Adam D’Angelo, founder of Social network news website Digg, Kevin rose ; creator of Firefox web browser, Joe Hewitt ; and the hedge fund manager behind Tiger Global Management, Charles Coleman. Adding icing to the cake is Chamath’s erstwhile employer Facebook who serves as the corporate investor.

 

7.Chamath ‘s relation to Facebook.

As you heard earlier, Chamath ’s erstwhile employer Facebook. Yes, Chamath  has served as a senior executive of the Facebook for a long term of 4 years and that was the phase when Facebook was transforming from a campus affair to a global platform. He is reportedly the longest incumbent senior executive of the Facebook till now and led its mobile and international user growth initiatives, with the growth graph of Facebook reaching 14x times more high.

 

8.Golden State Warrior’s

Chamath always wanted to be part of the Golden State Warrior, it was his childhood dream. He fulfilled his dream when he joined the Golden State Warriors’ ownership group in 2011. The team were NBA champions in 2015 and 2017. He has his own ring.

9.The first steps taken by Chamath as an investor

While working for Facebook, Chamath also took some initial steps as an investor. He invested in start-ups like gaming company playdom, and software company bumptop. He also invested in Peixi Urbano, pure storage and many. To his good fortune, Disney bought Playdom and Bumptop was bought by Google. These initial profits helped him with forming his own venture capital firm. Moreover, mark Zuckerberg also joined hands with his steadfast employee to be one of the first investors. The determined investor has also invested in yammer, an enterprise social network, second market, red robot labs, glooko and others through his firm.

10.The first steps taken by Chamath as an investor

While working for Facebook, Chamath also took some initial steps as an investor. He invested in start-ups like gaming company playdom, and software company bumptop. He also invested in Peixi Urbano, pure storage and many. To his good fortune, Disney bought Playdom and Bumptop was bought by Google. These initial profits helped him with forming his own venture capital firm. Moreover, mark Zuckerberg also joined hands with his steadfast employee to be one of the first investors. The determined investor has also invested in yammer, an enterprise social network, second market, red robot labs, glooko and others through his firm.

9.When Mr. Chamath was tried to be defamed.

A weird event supervened in Chamath ‘s flourishing career with constantly hiking graph, when to everyone’s stagger an email of him was leaked to the investors and founders of Airbnb to AllThingsD. The email included unexpected allegations against the founders for taking considerable amount of money off the table In a financing round when the employees had no idea of it.

Supplementing to the mishap, the email went viral. How the know-hows of the investors niche responded was like: Michael Arrington who is an airbnb investor and technology writer expressed his perspective as to why Mr. Chamath  was on a crazy agenda to hurt the company. Bryce Roberts, again a venture capitalist, took to Twitter to mention that ‘he was leery of leeks from grandstanding VCs. Finally, the whole scandal had to be ended with Chamath  joining them as an investor and the founders of airbnb also pledged to an employee liquidity program. Chamath  even, expressed his discontent towards the firms who were taking such unlawful ways to grab success.

    10.Chamath is a cars fanatic.

    The uncanny venture capitalist has keen interest in amassing himself cars as well. According to one of his tweets, he was the first person to order a Renovo Coupe. The supercar is electrically driven and by all accounts is approximately of $529,000. 

    11.How Chamath became the lead of AOL’s IM Group?

    At that time when AOL was firing everyone and had to save money, the young and hard working Chamath  was lucky enough to be the cheapest person left with them. Though, paid next to nothing, Chamath  was desperate at that level to work for them. Moreover, having an electrical engineering degree had more potential than a computer science degree. He was trained to have a vigorous mind which is the sole criteria to work in that disciple.

     

    12.When Chamath Palihapitiya had a shouting match with Ron Conway at the next big thing conference on San Francisco housing.

    In a rare instance, during a routine tech conference in Tony Sausalito, the temperature raised when Chamath  had a heated conversation with the super angel Ron Conway. Chamath  criticized San Fransisco mayor Ed Lee , some other tech companies. Plus adding to flavour was when Chamath  criticized Marc Benioff’s philanthropic program as a marketing tact. Ron Conway fought back for mayor Ed lee which led to a head on head firing of words between them. Eventually, Conway left to settle on his seat but added some spice to the verbal feud by calling Chamath  ‘A palo-alto resident’.

     13.Chamath as immigration reformer.

    The philanthropist Chamath  is among the founders of a lobbying group FWD.us, which aims at enhancing the education, encouraging technological innovation and immigration reforms. Chamath  favours the group by publicizing that, ‘ the folks that are actually people that run that day to day are sophisticated and understand the nuances of how to affect it… And to be honest with you, my perspective was, it’s a really good investment because it’s a good way to pay it forward, and I am really glad there are other people other than me who are dealing with it who have the patience and resolve to fix it out.’ 

     

    14.Chamath’s firm belief in Bitcoins.

    He has 100,000 bitcoins and he feels that everyone should have at least 1 per cent of their worth in bitcoins.  Warren Buffet in an interview with CNBC said that the world’s largest cryptocurrency doesn’t produce anything except more buyers looking to make money by selling to new buyers. Chamath said that he was a Buffet “disciple”, but Buffet was wrong about bitcoin and that he sees the cryptocurrency as a replacement to gold. “Something like bitcoin is really important, because it is not correlated to the rest of the market.”

     

    15.Chamath ‘s Net worth

    A basic managing partner at a venture capital firm may amass himself a pay out of $1 million to $5 million a year plus additional bonus. But the unconventional investor had been paying himself a decreed salary of $350,000 without any bonus whole working out of his converted garage in Palo alto, California.

    Still with his constant hard work, be it servicing as an electrical engineer in many companies or as a venture capitalist working for his own firm, he has been fortunate enough to amass himself a net worth of $1.2 billion.

    Addendum fact:

    1. Chamath is the owner and board member of the golden state warriors.
    2. He also gets its writings published for Huffpost and business insider.

     

    If you believe in and if you care about A.I. (Artificial intelligence) , and it’s role in the world, be long Amazon, be long Google, but be long Box.

    • Chamath Palihapitiya