Anthony Noto SoFi

Summary List Placement

About 150 special access acquisition companies (SPACs) are searching for a tech startup to buy at the moment, according to S&P Global Market Intelligence’s 451 Research, yet since the beginning of 2020, there have only been about 80 reverse mergers completed.

That’s a sign that there may be more SPACs in the hunt than there are attractive startups to acquire, the research firm said.

Plus, a key source of funding for SPACs has begun to dry up as well, as private equity firms have slowed their interest, Insider’s Reed Alexander reports.

Private equity firms typically chip in to buy startups when a SPAC plans to pay more for the company than it has in its own coffers.

Some SPACs, aware of the growing competition for US startups, have begun turning their attention abroad, the tech news site Rest of World reported. SoftBank and Rocket Internet are among the firms that have launched SPACs focused on areas such as Latin America. Startups in the region such as Nuvemshop, a Brazilian company that runs a platform for setting up online shops, could be ripe for purchase, according to Rest of World.

SPACs may also be shopping overseas looking for better value. Venture-backed …read more

Source:: Businessinsider – Technology

      

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