For startups... the biggest disadvantage to a SPAC is fee structure. The biggest advantage for a SPAC is timing. In tech startup-landia I believe timing greatly outweighs ~13% fee difference.
Many startups start the IPO process which takes 6-12 months from start to finish only to find that their IPO will be delayed due to unfavorable market timing. In tech IPOs, this can mean upwards of 20% pricing differences.
I'm surprised at how well this SPAC is trading at given how generally unsuccessful SPACs have been historically.
I believe there's a lot of opportunity in SPAC's little brother, the RTO on TSX-V, for startups. There are plenty of good startups that are no longer in a venture-fundable state (going after markets of sub $500M with less than 20% YoY growth) where liquidity and investment could help all stakeholders. If you know companies that fit this profile: $3M-$10M revenue, breakeven and 7-25% YoY growth... let me know.
Many startups start the IPO process which takes 6-12 months from start to finish only to find that their IPO will be delayed due to unfavorable market timing. In tech IPOs, this can mean upwards of 20% pricing differences.
I'm surprised at how well this SPAC is trading at given how generally unsuccessful SPACs have been historically.
I believe there's a lot of opportunity in SPAC's little brother, the RTO on TSX-V, for startups. There are plenty of good startups that are no longer in a venture-fundable state (going after markets of sub $500M with less than 20% YoY growth) where liquidity and investment could help all stakeholders. If you know companies that fit this profile: $3M-$10M revenue, breakeven and 7-25% YoY growth... let me know.