A " blank cheque " venture capital company is raising share capital to invest in private tech firms . Social Capital Hedosophia ventures , which raised $ 600 m for its recent IPO , plans to use the raised funding to invest in tech start - ups . The investments will grant the start - ups some of the benefits of being a public company , like access to capital , without having to go through the IPO transactions themselves . It also means private companies do not have to meet financial expectation of short - term orientated shareholders . Social Capital 's backers include Tony moss , former CEO of Skype , and Adam Bain , former COO of Twitter .
A "blank cheque" venture capital company is using share capital to invest in private tech firms. Social Capital Hedosophia Holdings, which raised $600m for its recent IPO, plans to use the raised funding to invest in tech start-ups. The investments will grant the start-ups some of the benefits of being a public company, like access to capital, without having to go through the IPO process themselves. It also means portfolio companies will not have to meet financial expectation of short-term orientated shareholders. Social Capital's backers include Tony Bates, former CEO of Skype, and Adam Bain, former COO of Twitter.