The Best ‘Blank Check’ Companies Getting a Fast Track to That IPO

VMS Eve (Virgin Mother Ship) carries VSS Unity (Virgin Spaceship) for its first flight
©2016 Virgin Galactic

The recent announcement that special purpose acquisition company Foley Trasimene Acquisition Corp. II (NASDAQ: BFT) is set to acquire Paysafe Group Holdings Ltd., a payments platform, has investors eyeing other SPAC deals closely — particularly in the tech space.

What Is a SPAC?

A SPAC is a publicly traded company specifically created to acquire or merge with private companies. As such, SPACs are often viewed as “blank check” companies. Acquisition by a SPAC can be a fast track to the public market as opposed to enduring the standard initial public offering process.

Find Out About: IPOs We’re Actually Excited About

SPAC Financing To Steer Autonomous Vehicle Innovations

Crunchbase News recently reported on the benefits of a SPAC over an IPO, including the accessibility of SPACs for tech companies with more speculative ventures or that are still early on their path to profitability.

Five recent SPAC deals involved companies developing electric vehicle or autonomous driving technology. But with 214 IPOs issued to SPACs so far in 2020, the funding option isn’t limited to any one market segment.

Consider: 6 Reasons Tesla Might Be the Stock You Need To Buy

SPAC Stocks To Watch

Virgin Galactic (NYSE: SPCE) was one of the trailblazers ahead of the SPAC trend, going public on the New York Stock Exchange in October 2019 after merging with Social Capital Hedosophia. This week, the space tourism company stock skyrocketed after the company tweeted that it successfully mated its VSS Unity spaceplane to the VMS Eve mothership — bringing it a step closer to a spaceflight from Spaceport America in New Mexico. The stock was up 17.6% after hours on Monday, Dec. 7.

More From Your Money
Sponsors of

Learn: How Much Money Private and Public Companies Have Poured Into Space

View, Inc., a Silicon Valley smart glass manufacturer, was recently acquired by a SPAC funded by Cantor Fitzgerald, a New York City investment banking firm. The company boasts breakthrough green technologies, over $30 million in sales and market penetration in commercial buildings across the U.S. These successes could foretell a bright future for investors who see the potential.

More From GOBankingRates

About the Author

Dawn Allcot is a full-time freelance writer and content marketing specialist who geeks out about finance, e-commerce, technology, and real estate. Her lengthy list of publishing credits include Bankrate, Lending Tree, and Chase Bank. She is the founder and owner of GeekTravelGuide.net, a travel, technology, and entertainment website. She lives on Long Island, New York, with a veritable menagerie that includes 2 cats, a rambunctious kitten, and three lizards of varying sizes and personalities – plus her two kids and husband. Find her on Twitter, @DawnAllcot.

The Best ‘Blank Check’ Companies Getting a Fast Track to That IPO
Close popup

Sign up for more financial tips and tricks!

Are you saving for a house? Starting to invest? Whatever your 2021 financial goals are, we can get you on the right track!

Loading...
Please enter an email.
Please enter a valid email address.
There was an unknown error. Please try again later.

Don't forget to add news@email.gobankingrates.com as a contact to ensure you receive our emails to your inbox!