Recent years have seen a dramatic increase in new ventures and startups seeking to introduce new solutions and disrupt industries across the board.
With a larger number of startups looking to grow capital or achieve liquidity, the IPO process available to such companies has also been subject to significant change, offering more—and faster, more efficient—avenues to take a company public, Forbes reports.
No doubt that SPACs are here to stay given their popularity, but the future of successful SPACs will have little to do with celebrity. The surest chances of success for SPACs will come from the expertise, knowledge and strategy that sponsors bring into the corporation (and its thesis) from the moment it begins to form.
Resources such as connected advisors and teams with appropriate in-depth expertise in the sector and geography detailed in the thesis will be important. Profound knowledge of the players in the space will also be essential in decreasing the risk for targets and increasing the successful exit rate for future combinations.
When it comes to sponsors’ success story, it’s important to note the team that backs the SPAC in addition to the sponsor—namely the team of bankers and underwriters who complement the sponsor’s industry-specific expertise with a deep understanding of the market and the economic climate. Read more.
