Market

VC firms are launching SPACs, raising billions of dollars to potentially buy startups they're invested in

Posted On: Mar 7, 2021   |   Posted By: Business Insider

VC firms are launching SPACs, raising billions of dollars to potentially buy startups they're invested in

Summary List Placement These days, more venture capital firms are either forming their own special purpose acquisition companies, or SPACs, or having internal conversations about doing so. A SPAC would let them launch a startup onto the public markets, even one from their own portfolios.
Peter Hébert, a founding partner at Lux Capital, whose SPAC started trading on the stock market last fall, said he's had at least 60 phone calls with venture capitalists who are asking if they should jump on the trend.
Lightspeed Venture Partners is among the SPAC-curious, according to Barry Eggers, a founding partner.
"We're investigating," Eggers said earlier this month when asked if the firm was considering such a move. "I'd say we're in the early stages of understanding the opportunity - how a vehicle fits in with our set of products."
So far this month, Khosla Ventures and Lerer Hippeau dropped regulatory paperwork to create five SPACS between them. The filings follow a rash of venture firms making the same play,...

Continue reading ...

 






The last Posts from Business Insider



Illinois health officials report 1,068 new cases of COVID-19, 14 deaths

Illinois health officials report 1,068 new cases of COVID-19, 14 deaths

CHICAGO - Illinois health officials reported 1,068 new confirmed and probable cases of COVID-19 Sunday, including 14 additional deaths. Illinois has set a record-high 7-day... Read more ...

Scores reportedly injured after multiple explosions level military base in...

Scores reportedly injured after multiple explosions level military base in Equatorial Guinea's largest city

At least four explosions rocked a military base in Bata, Equatorial Guinea, apparently reducing it to rubble. Videos show the devastation, and civilians fleeing, as local media... Read more ...

Donovan Mitchell on LeBron James' Comments on Jazz: 'I Really Don't Care'

LeBron James defended letting Utah Jazz players Rudy Gobert and Donovan Mitchell drop to the end of the NBA All-Star Game draft, but Mitchell said the draft order and James'... Read more ...

T.J. Dillashaw blasts 'best actor' Aljamain Sterling, 'cheater' Petr Yan...

T.J. Dillashaw blasts 'best actor' Aljamain Sterling, 'cheater' Petr Yan after UFC 259 disqualification

T.J. Dillashaw laid it on thick in the aftermath of Aljamain Sterling 's title win over Petr Yan at UFC 259 . Sterling was crowned the new bantamweight champion Saturday, but... Read more ...

Jayson Tatum's ideal NBA All-Star starting five won't surprise Celtics fans

Jayson Tatum revealed the four teammates he'd chose for his NBA All-Star Game starting five, and his choices aren't too surprising. Read more ...

Joe Biden's approval on COVID-19 steady as country wary about reopening: POLL

More than two-thirds of Americans approve of Biden's approach to the pandemic - a consistent result since he took office in January. Read more ...

Myanmar Crisis Heightens With Police Raids and Strike Call

YANGON, Myanmar - Myanmar careened deeper into crisis, as police occupied hospitals and universities and reportedly arrested hundreds of people involved in protesting last... Read more ...

West Virginia's Jim Justice Rebukes Other Governors Lifting Mask Mandates...

"Nobody likes a mask," the GOP West Virginia governor said. "But, for crying out loud, we could be a little more prudent for 30 more days or 45 more days or whatever it took... Read more ...

Cardi B, Taylor Swift, Billie Eilish, Megan Thee Stallion, More Performing...

HAIM, Bad Bunny, DaBaby, Dua Lipa, Post Malone, Harry Styles, and others will perform at this year's ceremony Read more ...

COVID scare hits mayoral candidate Kathryn Garcia's campaign

Garcia said Sunday she would get a COVID test after briefly canvassing alongside a candidate for local office who had tests positive. Read more ...