Startup investor Jason Calacanis raises millions for Musk’s Twitter deal

Startup investor Jason Calacanis raises millions for Musk’s Twitter deal

Startup investor Jason Calacanis raises millions for Musk's Twitter deal

Jason Calacanis

Adam Jeffrey | CNBC

Angel investor Jason Calacanis, an early backer of Uber and Robinhood, is seeking to raise tens of millions of dollars for a stake in Twitter as part of the $44 billion deal. Elon Musk to buy the social media company.

“We are now collecting interest to invest in Twitter with Elon Musk’s plan to make it private,” Calacanis wrote in a post seeking funds from his network of high net worth individuals. CNBC reviewed Calacanis’ email to potential investors.

The minimum investment required to participate is $250,000, Calacanis wrote, adding that the fees he receives for the deal will total around $18,000. As manager of the fund, he also asks for 10% of the carry, or earnings from the investment.

Calacanis is a longtime friend and fan of Musk, often voicing his support for the Tesla CEO on his podcasts, This Week in Startups and The All-In Podcast. Calacanis even joined Musk last year in New York, when the famed CEO was a guest host of “Saturday Night Live.”

#SNL the rehearsal was amazing,” Calacanis wrote in a tweet. “The whole production was amazing to watch.”

Additionally, shareholder class action filings against Tesla and Musk following the CEO’s prior proclamation on Twitter that he was taking Tesla private recently revealed friendly text messages between Calacanis and Musk at the height of the controversy. of 2018.

Calacanis asked Musk, “Are you holding on? Looks like you’ve had an intense week,” and said in another that people are “just being stupid” about him. “This is crazy,” he wrote. He also told Musk that he “checked those little b—–“, referring to Tesla critics and short sellers.

A judge in that case found that Musk knowingly made false statements regarding “secured funding” for a Tesla privatization deal.

Musk, the world’s richest person with a net worth of more than $200 billion, has raised funds from friends and investor groups following his deal in April to buy Twitter. A filing last week revealed he had secured more than $7 billion from a group that included Oracle co-founder and Tesla executive Larry Ellison, venture capital firms Sequoia and Andreessen Horowitz and the Binance crypto platform.

Pavlo Gonchar | Light flare | Getty Images

If his efforts to buy Twitter are successful, Musk is expected to take over as the influential social network’s interim CEO. Musk said he would allow former President Donald Trump to return to the site, although Trump said he would not return and would continue to post on his own fledgling social network called Truth Social.

The former president’s Twitter account had approximately 89 million followers and was permanently banned on January 8, 2021, under the direction of Jack Dorsey, “due to the risk of further incitement to violence” after the attacks on the Capitol. American on January 6. company said at the time.

Calacanis wrote on Twitter on May 10 that while he “enjoyed Trump’s break,” he doesn’t think the former president should have been permanently banned. Rather, he should have been kicked out for a year, then longer if he violated the terms of service again, Calacanis said.

“Pulling him off the platform only radicalizes his supporters, giving more fuel to their claims that they are being silenced, making them vote more!” he tweeted.

Calacanis did not respond to a request for comment for this story.

For the type of fund Calacanis raises, the SEC limits the number of qualified buyers to 2,000. If he increased the minimum investment by 2,000 entities, that would be a $500 million fund.

To be a qualified buyer, according to the SEC, an entity must have at least $5 million in investments, while to be an accredited individual investor, a person must have a net worth greater than $1 million or an annual income. at least $200,000.

Musk is set to make an appearance at Calacanis’ All-In Summit, which begins this weekend in Miami.

Disclosure: “Saturday Night Live” is a television show from NBCUniversal, CNBC’s parent company.

LOOK: Elon Musk becomes temporary CEO of Twitter after takeover

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