Loan startup SoFi goes through a combination with the special purpose vehicle Social Capital Hedosophia Holdings Corp. V, in a deal that valued the company at $ 865 billion, the companies said

The company with the official name Social Finance Inc, started as a student loan refinance company and has expanded its mortgage platform to include mortgages, personal loans, credit cards, insurance, investment and deposit accounts. 8 million members

The companies announced Thursday that the transaction will bring in up to $ 2 billion in cash receipts Including a fully committed private investment in public equity of $ 1.2 billion and up to $ 805 million in cash in escrow at the Blank Check Company

SPACs, also known as blank check companies, are effectively turning the traditional IPO model on its head by collecting money before building a company. They use the proceeds to make an acquisition, usually within a few years which the goal is converted into a public company

The SPAC is one of the investment vehicles of Chamath Palihapitiya, founder and managing partner of the venture capital company Social Capital LP and former Facebook Inc. and Ian Osborne, co-founder and CEO of the venture capital firm Hedosophia

SoFi

World News – USA – SoFi goes public for over $ 8, 7 billion blank check combination

Source: https://www.wsj.com/articles/sofi-to-go-public-through-8-7-billion-blank-check-combination-11610044705