Here comes the SPAC attack
The IPO market is getting ugly for many startups, but the sun is still shining for special-purpose acquisition companies, or SPACs — sort of shell companies with blank-checks to acquire other companies opportunistically.
SPACs are raising money hand-over-fist with public offerings, and since they have only 18 to 24 months to spend their stash, they’re eager to deal. Two SPACs, in fact, have recently cut deals with biotech startups, and chances are good they’ll be nosing around other venture sectors. Check out the SPAC phenomenon in this piece over at VentureBeat Life Sciences.
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About the Author, David P. Hamilton
David Hamilton has been writing for VentureBeat LifeScience since April 2007. He formerly spent 14 years as a reporter for the Wall Street Journal in its San Francisco and Tokyo bureaus. Prior to that, he spent several years as a reporter at Science Magazine and as a reporter/researcher for the New Republic, both in Washington.