The plans are coming together as a host of other venture capital firms consider forming SPACs or pushing their start-ups into deals with the shell companies, which have historically suffered from a lack of transparency and associations with short-term investors, such as hedge funds.
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Ribbit Capital plans $600m SPAC to target fintech businesses
But Spacs have only recently begun making inroads in Silicon Valley, following a string of deals with high-profile companies such as the space tourism group Virgin Galactic, sports betting site DraftKings and electric truck business Nikola. The push comes as venture capitalists contend with a backlog of ageing investments awaiting “exits” through sales or public offerings, potentially weighing on their ability to return capital to investors.
