SPACs could provide a new path to liquidity for VC-backed companies
September 15, 2017
Social Capital Hedosophia Holdings (SCHH) listed yesterday, raising $600 million for its special purpose acquisition company. Such vehicles aren't necessarily new, but SCHH is planning to use its capital to buy stakes in VC-backed tech unicorns. This unconventional approach could pave a new path to liquidity for mature, VC-backed, highly valued companies.
Our latest VC Analyst Note breaks down special purpose acquisition companies and associated risks. It also takes a look inside SCHH in particular, assessing its strategy and potential benefits for VC in the long run: