The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC: SPACs. What Are They? Why Now? How Do They Change The Venture Landscape? Are They Better Than IPOs & Direct Listings? How Should Founders Think About Them? Kevin Hartz & Troy Steckenrider @ A*
Aug 31, 2020
Join Kevin Hartz, co-founder of A* and former CEO of Eventbrite, alongside partner Troy Steckenrider, a former COO at ZeroDown. They dive into the world of SPACs, explaining how these Special Acquisition Companies can revolutionize the venture landscape. Kevin discusses the dramatic rise in SPAC popularity and its implications for startups, while Troy highlights the strategic advantages they offer. They candidly address the challenges within the SPAC industry and share insights on how to foster successful partnerships, making SPACs a compelling alternative to IPOs.
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SPACs: An Enduring Vehicle
- SPACs are not a passing trend, but an enduring vehicle for taking innovation companies public.
- This requires reforming SPAC economics to benefit both sponsors and partner companies.
Reform SPAC Economics
- Reform SPAC economics, similar to venture capital's evolution, aligning incentives for sponsors and companies.
- This will attract enduring businesses instead of short-term successes.
Going Public: A Financing Event
- Going public is a financing event, not an exit, offering founders more options like direct listings and SPACs.
- Companies are reversing the trend of staying private too long, seeking public market competition earlier.
