Yesterday my good friend Jeff Weinstein published an excellent presentation on SPACs (see video below, from minute 3:35 onwards).
High performing companies are and will continue to be courted by SPACs. It is important to know what they offer, but also their pitfalls. One of our top portfolio companies recently turned down a multi-billion dollar SPAC offer. It wasn't the right fit for them, but it was an important acknowledgment of how far the company has come. In other cases, SPACs are a great alternative to the traditional IPO model, opening up a credible path to market that was previously shut to them. And there has been no shortage of take-up in the last year as the chart below shows...
We are in a mania. But the SPAC model is here to stay.From Jeff to the Opportunities Everywhere Community:
'2020 has been a wild year, and one of the strangest phenomena to emerge has been the explosion of SPACs of all shapes and sizes. From basketball legend Shaquille O’Neal to hedge fund titan Bill Ackman, everyone is rushing to launch their own blank check vehicle. I took a look at why this is happening and what it means for startups, VCs, institutional investors, and the 'retail bros' who have entered the stock market in force. I hope you find this informative!'
This post reminded me of an amazing trip with Jeff, Peter, and Andrew to Barcelona in October 2019. Have a great Christmas break.
Life is awesome,
Yannick
