4 ms·
It does seem like the IPO process is a proxy for “are you mature enough to handle a large sum of money?”. Thus the SPAC ends up being a way to throw money at im
by blowski 4y ago
It does seem like the IPO process is a proxy for “are you mature enough to handle a large sum of money?”. Thus the SPAC ends up being a way to throw money at immature people who then piss it all away.
- adastra22 4y agoHardware-heavy companies (e.g. a lot of the new space companies) need the level of investment that you can only really get from public markets, but are still quite small companies from the perspective of people here. For example, they might be less than 100 employees but still need half a billion dollars to procure satellite testing and launch services to scale up a constellation they're launching. SPACs have been useful for this purpose. (I have no idea how these space companies are faring now, and what side of the statistic they represent.)
- hef19898 4y agoI think it's to early for all those SPACed aerospace companies to tell. It does seem so that a lot of the newer ones are to a large extend just benefiting from the hype SpaceX started and companies like Joby and Lilium carried forward. Whether any of those without a final product will actually fly, and if there is a market to serve, is the big unknown here.
- rhizome 4y agoHardware-heavy companies (e.g. a lot of the new space companies) need the level of investment that you can only really get from public markets, but are still quite small companies from the perspective of people here. For example, they might be less than 100 employees but still need half a billion dollars to procure satellite testing and launch services to scale up a constellation they're launching. SPACs have been useful for this purpose. So have governments. The entire US space industry has to be viewed in terms of budget reductions for federal aerospace, in terms of privatization.
- adastra22 4y agoCapitalism is not a zero-sum game.