SPAC: Special Purpose Acquisition

Special Purpose Acquisition Company

  • A SPAC is a public company formed to acquire a promising business.
  • The acquired company goes public faster and cheaper vs an IPO.
  • SPAC is money looking for companies, IPO is companies looking for money. source
  • Companies going SPAC: 23andMe, PayoneerHyzon etc.
  • Companies that have SPACed: QuantumScape (lithium batteries, up 162%), EVBox (EV charging, up 154%), RushStreet (social gaming, up 97%) etc.

Search Fund
Search Funds are the private version of SPACs. Chicago-Booth and Kellogg are hosting a Search Fund conference Entrepreneurship Through Acquisition (ETA) Feb 16-19, 2021 online. Topics include: