IPO 2.0 — SPACs

Sources: Jay R. Ritter, Warrington College of Business Administration, University of Florida; University of Chicago Center for Research in Security Prices
Source: World Bank
Sources: Jay R. Ritter, Warrington College of Business Administration, University of Florida; National Venture Capital Association. Data for 2016 and 2017 are adjusted to match previous years, which exclude unsuccessful deals.

“We are, make no mistake… we are in the middle of an enormous multivariate kind of Ponzi scheme” — Chamath Palihapityia, 2018.

It reminds me of Wall Street going up to 2008. The idea was, ‘As long as someone wants to buy this [collateralized debt obligation], we’re good.’ Nobody is thinking about: Is this a good product? — Tim O’Reilly, 2020

Source: “A Bottom-Up Approach to the Risk-Adjusted Performance of the Buyout Fund Market,” by Jean-François L’Her, Rossitsa Stoyanova, Kathryn Shaw, William Scott and Charissa Lai *Adjusted for size, sector and leverage.

“A huge amount of the VC capital doesn’t return. Everybody just sees the really big wins. And I know when they happen, it’s really wonderful. But I think [those rare wins] have gotten an outsize place, and they’ve displaced other kinds of investment. It’s part of the structural inequality in our society, where we’re building businesses that are optimized for their financial return rather than their return to society.” — Tim O’Reilly, 202)

“One of the notable aspects of compound growth is that the furthest out years are the most important. In a world where almost no one takes a truly long-term view, the market richly rewards those who do.” — Sam Altman

Source: Spac Insider

“Our mission is to create an alternative path to a traditional IPO for disruptive and agile technology companies to achieve their long-term objectives and overcome key deterrents to becoming public” (Social Capital Hedosophia)

“We believe that a more streamlined and transparent path to the public market will encourage private companies, in the technology industry in particular, to go public while allowing them to remain operationally focused on long-term value creation. As a result, public market investors can gain more near-term, direct investment exposure to long-term technology themes.” (Social Capital Hedosophia, 2017)

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