I enjoy kayaking, and so one of the ways by which I enjoy exploring the new places I visit is on a kayak. This one time, my sister Ash and I were in Victoria and we decided to go for a kayak. It was early spring, and although the sun was shining bright, it was quite windy. But we (mostly me) were undeterred, and googled for nearby kayak shops and found one right by the harbour. As we walked down to the shop, we could see the waters were quite choppy, and the boat and water taxi traffic was only exacerbating the choppiness. Having only kayaked once before and that too in a small lake, Ash was quite deterred at this point and suggested we grab beers on the patio instead. But I tried convincing her that it would be fun and even offered to get a tandem kayak (I am too competitive to enjoy tandem kayaking).
Do SPACs really democratize access to companies or provide an illusion that they do? Do PIPEs provide more favourable % ownership terms? Accordingly, does the retail continue to be exploited just like in an IPO scenario?
And do you think in the long-run, average SPAC returns will compensate investors for the large risk investors are having to bear with this seemingly earlier-stage/loss-making companies?
Choppy Waters
Some considerations come to mind.
Do SPACs really democratize access to companies or provide an illusion that they do? Do PIPEs provide more favourable % ownership terms? Accordingly, does the retail continue to be exploited just like in an IPO scenario?
And do you think in the long-run, average SPAC returns will compensate investors for the large risk investors are having to bear with this seemingly earlier-stage/loss-making companies?
Or am I overly generalizing?