adam jeffery | 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 Elon Musk’s $44 billion deal to buy the social media company.
“We are now raising interest to invest in Twitter with Elon Musk’s plan to take it private,” Calacanis wrote in a message requesting funds from his network of high net worth individuals. CNBC saw Calacanis’ email to potential investors.
The minimum investment required to participate is $250,000, Calacanis wrote, adding that the fees he charges for the deal will total about $18,000. As the fund manager, he also asks for 10% carry, or the profits that come 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 the guest host on “Saturday Night Live.”
“#SNL rehearsal was amazing,” Calacanis wrote in a tweet. “It was amazing to witness the entire production.”
Additionally, filings in a shareholder class action lawsuit against Tesla and Musk over the CEO’s prior proclamation on Twitter that he would take Tesla private recently revealed friendly text messages between Calacanis and Musk at the height of the 2018 controversy.
Calacanis asked Musk, “Are you okay? Sounds like you’ve had a rough week,” saying in another that people are “just making up nonsense” about him. “It’s crazy,” he wrote. He also told Musk that he “checkmated those little b—–s,” referring to critics and short sellers of Tesla.
A judge in this case concluded that Musk knowingly made false statements about having “secured funds” for a Tesla privatization deal.
Musk, the world’s richest person with a net worth of more than $200 billion, has been raising funds from friends and investor groups following his deal in April to buy Twitter. A filing last week revealed that he had raised more than $7 billion from a group that included Oracle co-founder and Tesla director Larry Ellison, venture firms Sequoia and Andreessen Horowitz, and cryptocurrency platform Binance.
Pavlo Gonchar | Light Rocket | fake images
If his effort to buy Twitter is successful, Musk is expected to serve as interim CEO of the influential social network. Musk has said he would allow former President Donald Trump to return to the site, though Trump said he will not return and instead will continue to post on his own nascent social network called Truth Social.
The former president’s Twitter account had around 89 million followers and was permanently banned on January 8, 2021, under the leadership of Jack Dorsey, “due to the risk of further incitement to violence” following the attacks on Capitol Hill. US on January 6, the 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 ousted. Rather, he should have been banned for a year and then for additional time if he violated the terms of service again, Calacanis said.
“Getting him off the platform only radicalizes his followers, giving more fuel to his claims that they are being silenced, which makes them vote more!” he tweeted him.
Calacanis did not respond to a request for comment for this story.
For the type of fund Calacanis is raising, the SEC limits the number of qualified buyers to 2,000. If it were to raise the minimum investment of 2,000 entities, that would be a fund of $500 million.
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 of more than $1 million or an annual income of at least $200,000. .
Musk is scheduled to make a speaking appearance at the Calacanis All-In Summit, which begins this weekend in Miami.
Disclosure: “Saturday Night Live” is a television show on NBCUniversal, the parent company of CNBC.
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