Why SPACs Are the New IPO

The traditional route to going public is too slow for companies that want to cash in on hype

Image: John Lund/Photodisc/Getty Images
Source: SPACData.com

Nikola, DraftKings, and Virgin Galactic all went public through SPACs.

In the ’90s, you could start a company, prep it for IPO, take it public, and white-knuckle your way through the lockup, all before the bubble popped.

The SPAC is the Vegas wedding chapel of liquidity events; it seems like an urgently good idea at the time, but it doesn’t always turn out that way.

I write about technology (more logos than techne) and economics. Newsletter: https://diff.substack.com/