The number of public listings by zero-revenue companies valued above $1 billion currently exceeds the dot-com era

Posted On: Apr 14, 2021   |   Posted By: Business Insider

The number of public listings by zero-revenue companies valued above $1 billion currently exceeds the dot-com era

Summary List Placement The number of public listings by companies without revenues valued above $1 billion has exceeded what was seen in the dot-com era, according to data from the Wall Street Journal .
In 2021, 16 companies either have or are expected to go public with a valuation of over $1 billion despite having zero revenues. That's more than double the number in 1999, three more than in 2001, and two more than in the year 2000, during the height of the dot-com bubble.
The rise in public companies with zero revenues of late is an illustration of a boom in special purpose acquisition companies, or SPACs.
Over 90% of zero revenue companies that plan to go public with over a $1 billion valuation in 2021 thus far intend on using a SPAC to do so.
A SPAC is a "blank check firm" that exists solely to list on a public stock exchange, raise money, and then find a merger partner to take public. There's been an incredible surge in SPAC popularity over the past two years.
In 2020, just shy of 250 SPACs went public...

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