2 ms·
So basically this article describes how not to give Wall Street crooks your money and instead keep more money for Silicon Valley crooks. Whats up with this "sys
by objektif 6y ago
So basically this article describes how not to give Wall Street crooks your money and instead keep more money for Silicon Valley crooks. Whats up with this "system" talk? Jeez I think SV types on the west coast need to grow up a bit. He even admits trying to SPAC a crypto company. That is more system than the system itself.
- Lazare 6y agoNot even that; the author didn't think through the math right. A SPAC is much more expensive than an IPO: 1. Sponsor takes 20% 2. Warrants give investors the right to buy buy shares cheaply 3. You still get the IPO pop (Nikola and DraftKings both had enormous pops after becoming public)
- thrill 6y agoWhen you IPO you sell a (usually) significant percentage (generally from 20% to 80%) of your company for an opening price - you don't get to capitalize on the hoped-for increase except with the percentage you didn't sell, either personally or corporately, as there are usually many limitations to discourage loss of the established personnel to sudden wealth syndrome. In the SPAC (and similar) models, you "sell" 20% of your company for a fixed amount (in exchange for the SPAC's cash). The remainder is yours to nurture as needed. With a little planning you avoid a lot of work generally irrelevant to your core business by finding an available company to be acquired by and who is by experience a good partner for publicly traded relationships.