Odd Lots Cowen's Co-President on Why SPACs Are Having Such a Moment
Jan 11, 2021
Larry Wieseneck, Co-President of Cowen and a seasoned capital markets expert, discusses the unexpected boom of SPACs amid the pandemic. He reveals how 2020 saw SPACs raise a staggering $60 billion, reshaping investor perceptions and capital markets. Wieseneck highlights the advantages of SPACs over traditional IPOs, particularly for tech firms with less historical performance. He also delves into the strategic shifts companies made during volatility and the future implications for public markets, offering insights into this modern financing phenomenon.
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SPACs' History
- SPACs are not new, they've existed for over 20 years.
- Market conditions and technology must align for broad utilization.
Pandemic's Impact on SPACs
- Growth-oriented companies previously relied on private funding rounds.
- The pandemic disrupted private markets, making SPACs an attractive alternative.
Paths to Going Public
- Companies now have three paths to going public: IPOs, direct listings, and SPACs.
- SPACs allow forward projections and pre-deal PIPE investments, offering more certainty.