Apparently so, given the recent explosion in SPACs — the jaunty acronym for “special purpose acquisition companies.”
While this investment instrument has been around for a long time, it has suddenly become the hottest way to raise capital, especially in tech. More than $30 billion has been raised so far this year through 75 SPACs. That’s more than double last year, with more to come in 2020.
It’s a good sign, since SPACS offer smaller, innovative and big-idea companies — like electric-transportation start-ups, savvy health care firms and space-exploration companies — a way to get enough capital to evade the tractor beams of bigger companies and reach escape velocity as independent businesses.
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