Chamath Palihapitiya is returning to the world of blank-check firms with a new vehicle that aims to raise $250m, a little more than two years after he walked away from a string of stalled deals.
The venture capitalist, often dubbed the “SPAC King,” filed late on Monday for an initial public offering of American Exceptionalism Acquisition Corp. A.
The company will seek to merge with a business operating in what he describes as his “historical areas of business expertise.”
In the filing, Palihapitiya identified sectors such as artificial intelligence, decentralized finance (DeFi), defense robotics and energy innovations like nuclear and solar power. He wrote that these industries could be vital in “maintaining US global leadership for the next century.”
Palihapitiya Sees DeFi Enter Next Phase
The document adds that innovation in these areas depends on sustained private funding and a willingness from technology firms to list publicly, expanding access to investors.
Palihapitiya has long been vocal about digital assets. He singled out DeFi, saying the next phase will involve tighter links between traditional markets and blockchain-based systems. He cited Circle’s listing and the broader adoption of stablecoins as evidence of momentum.
Two-Year Window to Secure Merger Partner
The SPAC has 24 months to find a merger candidate. If it succeeds, it would mark Palihapitiya’s first new deal since he shuttered two large vehicles in 2022 after failing to identify suitable partners.
At the height of the SPAC frenzy, he raised 10 blank-check firms, though not all delivered. Four never completed mergers, while others, including the high-profile listings of Virgin Galactic and Clover Health, came under intense scrutiny.
‘No Crying in the Casino,’ Filing Warns
His latest effort arrives as the market shows signs of life, with more than $16b raised across 81 SPACs so far this year, according to SPAC Research.
The new structure marks a shift from earlier SPAC models. Importantly, the offering will not include warrants, which were once a common feature for early buyers.
Instead, founder shares will still be granted. However, they will only vest if the stock rises at least 50% above the $10 IPO price. Palihapitiya said this design aims to better align with shareholder interests.
The sponsor, AEXA Sponsor LLC, has committed $1.75m in a private placement. This investment will close at the same time as the IPO. Meanwhile, Banco Santander is leading the offering. Once listed, the shares are expected to trade on the New York Stock Exchange under the ticker AEXA.
Palihapitiya warned prospective retail investors that the risks remain high. He wrote that those considering the stock should be prepared to lose their entire investment and pointed to Donald Trump’s saying that there can be “no crying in the casino.”
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