Tribe Capital, Founded by Social Capital Alum, Plan SPAC

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Venture firm Tribe Capital is seeking to raise $200 million for a special purpose acquisition company that could go public as soon as January, according to people with knowledge of the matter.

Tribe Capital Growth Corp. will seek a target in the technology sector and is in talks with potential underwriters, said the people, asking not to be identified because the matter is private. Tribe co-founder Arjun Sethi is set to be the SPAC’s chief executive officer, and Dubai-based Arrow Capital is slated to sponsor the SPAC alongside Tribe. Its board is expected to include Tribe co-founder Ted Maidenberg and Arrow founder Rohit Nanani.

Like FirstMark Horizon Acquisition Corp., which raised $414 million in an October IPO, the Tribe SPAC won’t be prohibited from pursuing a transaction with a company affiliated with its sponsors or directors, such as one within its portfolio, one person said. FirstMark Horizon -- backed by venture firm FirstMark Capital-- said in a filing that it will seek a fairness opinion from an independent adviser should it choose to strike a deal with a related entity.

Tribe declined to comment. An Arrow Capital representative didn’t immediately reply to a request for comment.

San Francisco-based Tribe’s investments include software-maker Carta, 3D-printed rocket maker Relativity Space and Momentus Inc., its website shows. Momentus, which has ambitions to transport in-orbit satellites and cargo, agreed in October to go public through a merger with a SPAC.

Tribe founders Sethi, Maidenberg and Jonathan Hsu previously were partners at Chamath Palihapitiya’s Social Capital. That firm has taken six SPACs public, including one that merged with Virgin Galactic Holdings Inc. and two that struck separate deals with Opendoor and Clover Health.

More than $70 billion, a record sum, has been raised via U.S. SPACs this year, according to data compiled by Bloomberg.

©2020 Bloomberg L.P.

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