for a short time In the past, during the ongoing pandemic, the backstory seemed to be the solution for wealthy startups that needed to provide liquidity to their backers.
SPACs, or special purpose acquisition companies, are paper companies that go public with capital attached to private entities to effectively raise startups on the public markets.
That SPACs have a colorful history is an understatement. But in the year In 2020 to 2021, an influx of startup capital and high-profile backers, some hoped that blank-check companies would save unicorns from private-market bankruptcy. It was not to be. Some startups have gone public through SPACs, yes, but few brand name unicorns, and in many cases, a blank check has resulted in the burning of initial startup value. Or worse.
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The latest news — from Bird’s potential cancellation and BuzzFeed employee lawsuit to Lach’s latest (more on that soon) — has us wondering if there’s really something underneath the mess that the SPAC-led startup has left all over the public markets. Then we want to know who is responsible. Thank you, we have receipts.
