The Year Of The SPAC And What It Means For Hardware

CBS MarketWatch declared 2020: The Year of the SPAC (Special Purpose Acquisition Corporation). A record 219 companies went public through this fundraising vehicle that uses a reverse merger with an existing private business to create a publicly-listed entity. This accounted for more than $73 billion dollars of investment, providing private equity startups a new outlet to raise capital and provide shareholder liquidity. According to Goldman Sachs, the current trends represents a "year-over-year jump of 462% and outpacing traditional IPOs by $6 billion." In response to the interest in SPACs, the Securities and Exchange Commission agreed last week to allow private companies to raise capital through direct listings, providing even more access to the public markets outside of Wall Street's traditional institutional gatekeepers.