Report: To SPAC or Not to SPAC?

SPAC

The question on many software founders’ minds these days echoes Hamlet’s famous soliloquy: To SPAC or not to SPAC?

The growth in SPACs, at least before the recent regulatory pushback, is astounding, Forbes reports. U.S.-based SPACs raised $87.9 billion in the first quarter of 2021, beating the total amount raised in 2020 in just 3 months. In 2020, funds raised via SPACs grew 462%, raising over $79 billion. That’s more than the $67 billion raised over the same period in traditional IPOs.

SPACs are popular with retail investors who want in on growing companies that aren’t otherwise publicly available. They appeal to founders of late-stage software companies, too. SPACs offer an attractive exit for companies looking for an option that values future growth. Read more.

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