The "SPAC King" Promised to "Democratize" Investing for Retail Investors. His Six SPACs Lost Them 70-98% of Their Money. He Made $750 Million.

Chamath Palihapitiya became the face of the SPAC boom, launching six blank-check companies that promised to give ordinary investors early access to the next generation of tech giants. Virgin Galactic! Opendoor! Clover Health! SoFi! The retail crowd piled in. By mid-2025, five of his six de-SPACed companies had cratered between 70% and 98% from their post-merger prices. Clover Health alone fell 76% in its first year. Virgin Galactic? Down 95%. The "democratizing" part worked exactly as designed — retail investors got equal access to losing their life savings. Meanwhile, Chamath made approximately $750 million by selling his shares before the collapse. When asked if he would launch another SPAC, 70% of his followers said no. He launched one anyway. The SPAC structure gave sponsors huge upside with minimal downside, while retail investors bore all the risk. Democracy in action.