Summary of What Is A SPAC?

Looking for the report?
We have the summary! Get the key insights in just 5 minutes.

What Is A SPAC? summary

Editorial Rating

9

Recommendation

New firms are looking for a less cumbersome means of capital raising than the traditional IPO. Enter the special purpose acquisition company (SPAC), which can fast-track a start-up’s public listing but carries disadvantages as well as advantages. In this thorough and straightforward report, market intelligence consultants at CB Insights provide would-be investors with a useful primer on what a SPAC does, its pros and cons, and its future prospects.

About the Author

CB Insights is a technology market-intelligence consulting firm.

Summary

The special purpose acquisition company (SPAC) may be a palatable alternative to what can be a fickle IPO market.

The SPAC is a type of firm that debuts on public markets prior to acquiring a target company. It is a holding company, “a ‘blank check’ shell corporation.” SPACs are not new but are arousing renewed interest. In times when the IPO market is volatile, entrepreneurs envisaging a quicker exit may find the SPAC an attractive option.

The mechanics of a SPAC are relatively straightforward: An individual or a firm forms a SPAC and files to go public, attracting the interest of investors...


Comment on this summary

More on this topic

By the same author

What Is Venture Debt?
7
Unbundling UPS: How the Traditional Shipping and Logistics Space Is Being Disrupted
9
Livestreaming Is on the Rise. Here’s What It Means for the Future of E-Commerce
9
Google Is Partnering with Cyber Insurance Giants. Here’s What It Means for the Future of Cloud Security and Insurance
9
6 Trends Rising E-Commerce Players Are Leveraging to Compete Against Amazon
10
Everything You Need To Know About What Amazon Is Doing In Financial Services
8
Covid-19 Has Scrambled Fintech’s Winners & Losers
7
Investment Banking Explained
7
In Defense of the IPO, and How to Improve It
8
The Great Reversal
8
Darkness by Design
8
Waiting for the Last Dance
9
The Financial Crisis and the Free Market Cure
7

Related Channels