Traditionally, companies that have successfully told their story and become market leaders have taken the IPO route — pitching their story to institutional investors on banker-led roadshows rather than to the people that buy their products, TechCrunch reports.
But the last 18 months have seen a new door open for companies seeking to skip the bankers, partner with good managers, and gain a more direct route to public capital: merging with a SPAC.
For the right consumer technology companies — for which the story is often just as, if not more, important than the financial figures — a SPAC deal offers a more direct access to public capital. Instead of walking institutional investors through the P&L, these companies can spend more time telling investors, including the retail investors using the products, what the company can be long-term. Read more.
