Ask HN: Are You Familiar with SPACs?

10 pointsPhilosAccnting4 comments

I've kicked around SPACs as a financing option, and was wondering if anyone else has been part of one. If you have, what's the experience been like?

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You would have a public company afterwards, it's the hot alternative to an IPO. I think the short answer is: 'inappropriate for anyone 'kicking around' the idea as a financing option and asking internet strangers'.

If you wouldn't have an IPO (of your own), I don't know why you'd merge with a SPAC.

If you would, then it's basically equivalent, just one mechanism by which you might do that, for technical or hype reasons, and you'll be talking to investors, banks, SPAC managers about that, not internet strangers.

(Shrug no I haven't been part of one.)

Thank you. It's probably a stupid question. I've been hearing about it a bit, and if it's fashionable it must be good, right? ;)

I did quite some. It's an investment type with very little downside a quite some upside if you buy in near NAV. Just don't hold them post-merger, you typically end up bagholding.

Yes, it allows certain investors to buy-in right before IPO.

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