Upside
The Seed - Episode 3
Jul 28, 2024
Discover the resurgence of SPACs as a route for struggling companies to go public. Explore the fine line between investing and gambling in the unpredictable crypto market. Learn about the challenges faced by European founders in securing capital and the importance of strong value propositions. Dive into the significance of Revolut's UK banking license and its impact on the fintech sector. Finally, enjoy a light-hearted take on navigating payment woes across digital marketplaces.
21:43
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Quick takeaways
- The resurgence of SPACs offers struggling companies a smoother path to achieve public listings and access capital under challenging valuations.
- Understanding the distinction between investing and gambling is crucial, as successful investing relies on strategies that yield expected returns rather than luck.
Deep dives
The Resurgence of SPACs
The current landscape of Special Purpose Acquisition Companies (SPACs) shows a noticeable resurgence, with over 20 new SPACs filing for IPO since June, aiming for more than $4 billion in capital. This revival is partly due to the backlog of unicorns—companies valued at over $1 billion—that are struggling to go public due to high pre-existing valuations and liquidation preferences. The SPAC structure allows for a potentially smoother public listing process, giving companies an avenue to enter the market while addressing the valuation concerns of investors. This trend could signal a more favorable environment for startups to transition into publicly traded entities, alleviating some distress about capital access.
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