4 ms·
SPACs delivered easy money, but now companies are running out
- malshe 4y agohttps://archive.ph/vK5QP https://archive.ph/vK5QP
- hn_throwaway_99 4y agoFeels a bit like old news. Seems like SPACs were always a pump-and-dump scheme for Chamath and his ilk. Curious, have there been any successful SPAC stories. Literally every one I've seen crashed and burned nearly immediately after launch. Most recent one I'm aware of is Getaround in December - can't remember the last time I've seen a stock chart like that, or how that deal even happened in the first place.
- ianburrell 4y agoSPACs were a way to go public and avoid the scrutiny of IPO process. Solid companies do IPO cause their financials look good and IPO give them more money. Dubious companies used SPAC because their financials didn't look good and SPAC could conceal that. The result is that the scammier and speculative companies used SPACs, and when investor money dried up and companies had bad results, SPACs disappeared.