SoFi to go public via SPAC backed by billionaire investor Chamath Palihapitiya

• SoFi is going public via a SPAC backed by billionaire investor Chamath Palihapitiya, according to an announcement made on CNBC on Thursday.
• SoFi will be valued at nearly $9 billion and the personal finance company is expected to receive up to $2.4 billion in proceeds from the deal.
• SoFi was founded in 2011 and was valued at $4.3 billion in its last private funding round.
• $4.

SoFi $4 via a merger with a SPAC backed by billionaire investor Chamath Palihapitiya.

Palihapitiya made the announcement on CNBC on Thursday, and $4, citing sources familiar with the matter.

SoFi will utilize Palihapitiya's $4 to go public. Social Capital Hedosophia Holdings Corp V traded up as much as 50% in Thursday trades.

The deal will value SoFi at nearly $9 billion and provide up to $2.4 billion in proceeds to the company. SoFi last raised $500 million in 2019 at a valuation of $4.3 billion.

SoFi was founded in 2011 and offers a mobile first personal finance service that includes student loan refinancing, investment services, credit cards and insurance.

"SoFi's innovative, member-first platform has demystified financial services for millions of Americans and simplified the process for those looking to apply for loans, invest their money, obtain insurance and refinance their debt, among many other tasks that were previously arcane and needlessly complicated," Palihapitiya explained in a press release.

Read more: $4

SPACs, or blank check companies, have seen a surge in popularity over the past year as companies utilized the vehicle to quickly go public, sidestepping the traditional IPO route that could be time consuming and costly. Palihapitiya himself has backed a number of successful SPACs including $4 and $4.

Palihapitiya said of SoFi, "SoFi's innovative, member-first platform has demystified financial services for millions of Americans and simplified the process for those looking to apply for loans, invest their money, obtain insurance and refinance their debt, among many other tasks that were previously arcane and needlessly complicated. Additionally, the acceleration of cross-buying by existing SoFi members has created a virtuous cycle of compounding growth, diversified revenue and high profitability.

With more than $70 billion raised from SPACs in 2020, $4 via SPACs over the next two years.