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Interesting timing: I had never heard of SPACs until 23andme announced they were using one to go public this morning, and here they are in an entirely unrelate
by bsimpson 6y ago
Interesting timing:
I had never heard of SPACs until 23andme announced they were using one to go public this morning, and here they are in an entirely unrelated context on the same day.
- Apocryphon 6y agoYou'll be hearing about them more soon. Nikola is a SPAC, for instance.
- optimalsolver 6y agohttps://en.wikipedia.org/wiki/Frequency_illusion https://en.wikipedia.org/wiki/Frequency_illusion
- Apocryphon 6y agoWell, it's not just that. Using SPACs to bypass the traditional IPO process was the big financial innovation of 2020. https://www.washingtonpost.com/business/spacs-were-hot-in-2020-and-are-hotter-now-heres-why/2021/02/03/58196942-663a-11eb-bab8-707f8769d785_story.html https://www.washingtonpost.com/business/spacs-were-hot-in-20... > 6. Why are they hot now? > The pandemic has raised volatility levels, making IPOs riskier and bringing that market to something of a crawl. At the same time, the U.S. Federal Reserve had pumped extra cash into the market. Its actions also lowered yields, meaning SPACs offered the prospect of better returns that came with some downside protection, thanks to the right of redemption. And the new attention came as venture capital and private equity funds that had pumped money into private companies for a decade were looking for an exit -- preferably not an IPO.