Blank-check companies may be little more than a quick way to de-horn unicorns
We asked yesterday How low is a SPAC-led public debut and the answer Very close to zero. Some now-public companies that ran blank-check companies to the public markets have been stripped of 90% or more of their value.
It’s hard to overstate how far some SPAC mergers have fallen.
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The good news is that the US SPAC market went bananas last year, with other countries’ public markets failing to generate as much blank-check corporate volume. Europe, for example, saw far fewer SPACs during the 2020-2021 boom than we tabulated in America. So have European startups dodged a bullet? Maybe, but not to the extent we first imagined. why It depends on the quality of the company.