2020 has been the year of SPACs led by Venture Capitalists (VC) firms and individuals. Some people have compared SPACs to ICOs, in terms of hype and also potential outcome (ICOs flared up with a lot of drama and gov’t scrutiny). I believe SPACs can play an important avenue for specific companies, typically those that are more capital intensive and take a while to get to maturity. From a retail perspective, it provides an opportunity for investor to get access to technology companies that still have a lot of upside. I’m bullish on SPACs that are led by established technology focused VCs who have a track record of returning capital to their existing investors in established venture funds.
Here are the active SPACs in market today, including the amount of it:
VC firm led SPACs
Ribbit Capital $350M – https://www.renaissancecapital.com/Profile/LEAP.U/Ribbit-LEAP/IPO
FirstMark Capital $360M – https://www.renaissancecapital.com/Profile/FMAC.U/FirstMark-Horizon/IPO
Lux Capital $300M – https://www.renaissancecapital.com/Profile/LUXAU/Lux-Health-Tech-Acq/IPO
Social Capital – 5 SPACs for a total of $3.2B+ – https://www.renaissancecapital.com/Profile/IPOF.U/Social-Capital-VI/IPO
Social Leverage $300M https://www.renaissancecapital.com/Profile/SLAC.U
Lerer Hippeau $200M https://www.renaissancecapital.com/Profile/LHAAU/Lerer-Hippeau-Acquisition/IPO
Tribe Capital $200M https://www.renaissancecapital.com/Profile/ATVCU/Tribe-Capital-Growth-I/IPO
Individual VCs (but not their firms) SPACs
Reid Hoffman (of Greylock) $600M https://www.renaissancecapital.com/Profile/RTP.U/Reinvent-Tech-Partners/IPO
Bradley Tusk (of Tusk Ventures) $300M https://www.renaissancecapital.com/Profile/IGACU/IG-Acquisition/IPO
Brad Feld (of Foundry Group) $225M https://www.renaissancecapital.com/Profile/CRU.U/Crucible-Acquisition/IPO
I know of several other VC led SPACs coming online. More to come for sure.
Relative to all the SPACs that have been raised this year and previous years (see below), the number and total value of VC related SPACs is tiny percentage. Image is via https://www.spacresearch.com/