Blank-check companies may be little more than a quick way to de-horn unicorns
Yesterday, we asked how low SPAC-led public debuts could go, and the answer was very close to zero. Some now-public companies that rode blank-check companies to the public markets have seen 90% or more of their value deleted.
It’s difficult to overstate how far some SPAC combinations have fallen.
The Exchange explores startups, markets and money.
The good news is that while the U.S. SPAC market went bananas last year, other countries’ public markets failed to generate as much blank-check corporate volume. Europe, for example, saw far fewer SPACs during the 2020-2021 boom than we tabulated in America. Does that mean that European startups dodged a bullet? Perhaps, but not to the degree that we may have first anticipated. Why? It comes down to company quality.