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The SPAC Fad Is Ending in a Pile of Bankruptcies and Fire Sales

126 点作者 fairytalemtg大约 2 年前

16 条评论

noizejoy大约 2 年前
It may not be entirely coincidental that a lot of financial carnage is happening just after the large scale printing of money (quantitative easing) stopped, interest rates started rising and borrowing money became no longer almost free (for the wealthy).<p>Arguably numerous “new” financial constructs only worked with free money. Meme stocks, crypto, SPACs and very large VC funding may have needed all that free money to “work”?<p>So maybe we’re just returning to more traditional financial investment patterns?<p>Some or all of those financial constructs probably still have their place on a much reduced scale in more specific contexts. But it’s no longer guaranteed free money.<p>I’m assuming that there are quite a few PhDs and other books in the works that will analyze those connections&#x2F;dependencies in considerable detail.
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muppetman大约 2 年前
Why doesn&#x27;t anyone discuss the giant Elephant in the room - the need to have a product&#x2F;service people actually want to buy?<p>No doubt SPACs and other financial tricks don&#x27;t help matters, but if people are really wanting to buy your widget then surely that&#x27;s going to go long way to stopping you from going broke?<p>I mean, am I insane? Is that not the fundamental root problem here?
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mikeodds大约 2 年前
Another worthwhile watch from the SPAC king Chamath<p><a href="https:&#x2F;&#x2F;twitter.com&#x2F;silvermanjacob&#x2F;status&#x2F;1595059806200643589" rel="nofollow">https:&#x2F;&#x2F;twitter.com&#x2F;silvermanjacob&#x2F;status&#x2F;159505980620064358...</a><p>It seems insane to me these people dump on retail and their followers and continue to stand up in public.
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olliej大约 2 年前
I&#x27;d like to know what the failure rate for the regular IPO path is as well, and the article doesn&#x27;t include that comparison.<p>That said the failure reasons (cost of operations exceeding revenue, debt availability, excessively &quot;optimistic&quot; growth predictions, etc) are all things that do show up in the audits and financial documents go with an IPO, with the ability to file fraud claims on the company and execs if the financial documents and prospectus are false. The SPAC model removes the financial reporting requirements and seems to provide significant liability shields not present in the IPO path, so if nothing else it creates an incentive structure for actual fraud to use them.
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pranshum大约 2 年前
It feels like so much of the IPO class of 21-22 was just a 0 interest rate phenomenon. I did this analysis of fintech IPOs last year. So many of them are down by 80% and growth is slowing. <a href="https:&#x2F;&#x2F;yarn.pranshum.com&#x2F;ipos_int" rel="nofollow">https:&#x2F;&#x2F;yarn.pranshum.com&#x2F;ipos_int</a>
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fairity大约 2 年前
For those curious in learning more about how SPAC&#x27;s work and the associated costs &amp; returns for various stakeholders, I found this paper to be pretty comprehensive: <a href="https:&#x2F;&#x2F;site.warrington.ufl.edu&#x2F;ritter&#x2F;files&#x2F;SPACs.pdf" rel="nofollow">https:&#x2F;&#x2F;site.warrington.ufl.edu&#x2F;ritter&#x2F;files&#x2F;SPACs.pdf</a>
afandian大约 2 年前
<a href="https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Special-purpose_acquisition_company" rel="nofollow">https:&#x2F;&#x2F;en.wikipedia.org&#x2F;wiki&#x2F;Special-purpose_acquisition_co...</a>
joncp大约 2 年前
<a href="https:&#x2F;&#x2F;archive.is&#x2F;ZfZkN" rel="nofollow">https:&#x2F;&#x2F;archive.is&#x2F;ZfZkN</a>
paxys大约 2 年前
The SPAC boom was a huge success...for the people involved in setting them up. Company employees and retail investors were the ones left holding the bag, as intended.
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farhanhubble大约 2 年前
Wait! You can list a company without conducting any real business?
pbreit大约 2 年前
Was there anything inherently bad about the SPAC approach or did it mostly just attract lousy users?
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aruanavekar大约 2 年前
2021 counts were huge, but low on value <a href="https:&#x2F;&#x2F;www.spacinsider.com&#x2F;data&#x2F;stats" rel="nofollow">https:&#x2F;&#x2F;www.spacinsider.com&#x2F;data&#x2F;stats</a>
sixQuarks大约 2 年前
Back during the first dot-com boom in the late 90s, these were called reverse mergers, and usually involved penny stocks. Before the internet came along, most were deals in the gold mining space.<p>One of these reverse mergers acquired one of my sites. The whole company had 4 employees, no revenue and had a market cap of over $200 million which was huge at the time.
throwaway5959大约 2 年前
I’m curious if anyone at OpenDoor still thinks their RSUs are going to be worth anything and how many people have left.
drumhead大约 2 年前
This time it&#x27;s different.....it never is.
unixhero大约 2 年前
Is 3D printing ever successful?
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