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Comment by jfengel | Hacker News Reader

SPACs aren't inherently scams, but they certainly enable scams. They bypass a lot of the regulations designed to manage IPOs.

I would be curious to know why Grindr chose this route rather than a more traditional IPO. It does hint that there's something shady. But at least at a glance, there's no reason why a dating site shouldn't be well-governed and quite profitable.

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Grindr barely has any features, it’s basically a site for people who are cruising for sex, like a decentralised gay sauna.

Gay guys (I am bi and use it) just need text and photos to show off their pecs and dick pics. Grindr has successfully constructed a dick pick delivery service that works, put some ads and a Grindr plus if you want to talk to people further away and that’s it really.

It’s not been product market fit, it’s product market perfection. There is no need for any new feature and I haven’t seen them add any in a decade.

The thing about spacs isnt that the product itself is a scam, it can be, but it does not need to be. The problem is that its a product wrapped in two scam wrapping papers. The first which is extracted the instant the deal goes through is typically 5% - 20% of the ipo value, the second is unbounded but historically an additional 30-80% which is value lost over the next year. Its also the case that the latter will trend upwards over time.

The actual product can be fine, but its a bit like buying something after being told its great but you cant actually look at it, and we say it costs x, but dont mention that 80% of that is the optional wrapping paper that you didnt want or need to buy.

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