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I see that it could displace VC somewhat in dollar amount, but there are some serious bottlenecks around filing with the SEC and getting listed to where it'd be
by oneelectron 6y ago
I see that it could displace VC somewhat in dollar amount, but there are some serious bottlenecks around filing with the SEC and getting listed to where it'd be prohibitive for a large number of companies to start that way. It's definitely a lot harder, more all-or-nothing, and more time consuming than getting a million-dollar SAFE and building a prototype. And SPACs are also dependent on consuming those "traditional" companies to fulfill their empty promise. What feels most intuitive though is the propagation/decline of SPACs will simply be based on the successes/failures of the SPACs we're watching now. Tech and finance seem to have few mechanisms outside of pattern matching what got their predecessors rich.
- tempsy 6y agoyeah I’m not suggesting that SPACs are appropriate for pre-product startups. I see them replacing VCs in what would otherwise be a growth stage round eg post Series A/B. So we will still have angel and seed/early stage investors, but I see SPACs easily competing with what would otherwise be large late stage or growth rounds that the big VC firms are most active in.