SPAC Trends in 2021
Speaking of 2021, SPACInsider reports that SPACs have raised more than $38 billion since the beginning of the year, almost half of the total raised in 2020.
For example, Anne Wojcicki, CEO of consumer genetic testing company 23andMe, announced in February that she intends to go public through VG Acquisition, a SPAC founded by Richard Branson. They will each contribute $25 million to the SPAC and expect to raise $759 million from private and public investors to finance the acquisition of 23andMe. For Wojcicki, it was important that she knew who her investors were ahead of time, unlike going public first in an IPO.
On the other hand, Goldman Sachs CEO David Solomon recently vietnam mobile database warned that the current SPAC craze may have "gone too far." Speaking to investors in mid-January 2021, Solomon pointed out that the current SPAC ecosystem is flawed and needs more time to be fixed before it can become a sustainable financing mechanism.
He believes that market conditions may be driving companies toward SPAC acquisitions because they have no other choice. If the environment changes, SPAC activity could decline. “The ecosystem is not without its flaws,” he said, according to the Financial Times . “I think the incentives are still evolving. One thing we’re watching very, very closely is the incentives of the sponsors and the incentives of the salespeople.”
SPARC
From SPAC to SPARC. Bill Ackman has now also created SPAC 2.0, aka SPARC - a special purpose acquisition rights company. He will look for another acquisition target, and if investors approve the potential deal, they can come up with the necessary cash. In other words, the funds can only be obtained after the target has been found.