Acquisition corporation, Cbs MarketWatch declared 2020 as the year of the spac (special purpose acquisition corporation). The securities and exchange commission agreed to allow private companies to raise capital through direct listings, outpacing traditional ipos by $6 billion. In response to interest in spacs, the Securities and Exchange Commission recently agreed to allow private companies to raise capital through direct listings. Private equity startups have been given an outlet to raise capital and provide shareholder liquidity. Cbs MarketWatch declared 2020 as the year of the spac (special purpose acquisition corporation).
Softbank SPAC targets robot revolution
Softbank chief executive masayoshi son has declared that by 2047 robots will outnumber humans with 10 billion small humanoids rolling the streets. He also invested in whiz, pepper, bear robotics and brain corp. “Now, we believe the ai revolution has arrived,” he said. Notably, Softbank last week announced it is raising $525 million in a blind pool spac for investments in artificial intelligence.
5 LiDAR companies go public via SPAC
Velodyne, luminar, innoviz, and aeva are among the startups that have gone public via spacs this year. Each of these companies raised hundreds of millions of dollars at valuations exceeding $1 billion each. Spacs allow investors to reinvest their returns in the robotics sector and drive innovation in advance of greater adoption. Notably, spacs also provide faster access to capital and greater liquidity.
What will slow the craze?
Andrew flett, general partner of mobility impact partners, has raised $115 million for a new spac (motion acquisition corp.). “This is the first spac i have been directly involved with, but the mechanism has evolved and matured over the last couple of decades,” he said. Flett’s investment vehicle is still on the hunt for an acquisition of target businesses in connected vehicle industries globally. “These companies are popular now as a function of the same yield scarcity and immense liquidity that has been driving public equity speculation.”
It is not the right option for startup founders to focus on their company. He further pointed to previous spac upticks, since the 1980s, led by dubious underwriters that used the mechanism as a way to make a quick buck through “pump-and-dump” schemes. “Smart guys…in the end, the asset needs to stand on its own,” he added. Notably, softbank has announced a relatively small spac. “I prefer seeing soft