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The Wall Street Journal: New investment vehicle gives tech startups an alternative to IPO

A group of Silicon Valley entrepreneurs plans to launch an investment vehicle that will offer a richly valued technology startup an alternative route to public ownership.

The group, led by Chamath Palihapitiya, chief executive of venture-capital firm Social Capital, plans to raise at least $500 million from public investors, according to a Securities and Exchange Commission filing Wednesday. The vehicle is to be known as Social Capital Hedosophia Holdings Corp.

The so-called special purpose acquisition vehicle, or SPAC, will then seek to take a minority position in one of the more than 150 private U.S. technology companies valued at $1 billion or more, according to the filing.

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