What is common between the Gigantic Entrepreneurss across the United States? Yes, they are all huge personalities with wealthy income, but there’s so much to admire among them. They are linked with the hottest investing phenomena of the moment: Special Purpose Acquisition Companies or SPACs.
Astonishing figures of SPACs have burst onto the scene since the turn of the year. More than 550 SPACs, also known as blank check companies, have filed to go public on the United States exchange markets. They are looking to raise higher revenues worth $160 billion. Let me just remind you, the best thing is yet to come to for the SPACs.
Besides the hype around SPACs, there are also worrying signs mounting up quite frequently. The lack of transparency could leave the small and less savvy investors stranded and picking up the tabs if the current bloom ends. So how do these gigantic entrepreneurs make money with SPACs? And just how risky of an investment are they?
SPACs are usually looking for a late-stage one with a bright idea and a promising future – one that wants to raise capital by going public but don’t want all the hassle, red tape, uncertainty, and steep fees associated with an IPO. Electric vehicle makers is a big example of how the revenue could get raised in SPACs. Although, they might not be making revenues right now, they have the opportunity to attract interests from SPACs and raise their substantial revenues for the year. As soon as the companies attract new mergers, their stocks get valued up in the US Exchange Markets.