A former Uber Technologies executive, Travis VanderZanden, helped to start Bird in 2017. It dropped electric scooters onto the pavements of major cities and let customers remotely unlock and rent them using an app. The model was widely copied, including by Uber, and turned Bird into one of the fastest startups to reach a $1bn valuation.
It took only a few years for the scooter fad to fade, though. Bird and its closest competitor, Lime, cut staff and dialled back operations. Uber also retreated. The coronavirus pandemic dealt a further blow when people curbed travel and fled many of the city centres that scooter companies occupy.
The recent SPAC deal momentum lacks any punch as 10 of 11 May deals are trading below $10. Today s deals (SWBK, CENH) not likely to break the trend. Expect more credit investors to join as it is all about yield now.
Bird’s SPAC filing shows scooter-nomics just don’t fly
Scooter unicorn Bird is going public, per an agreement to merge with a special purpose acquisition company, or SPAC. After rumors and reports circulated for months about an imminent deal, it has finally arrived.
First, a quick overview of the agreement and the players involved: Bird is merging with Switchback II at an implied valuation of $2.3 billion. Fidelity Management & Research Company will lead the deal’s $106 million in private investment in public equity, or PIPE. Apollo Investment Corp. and MidCap Financial Trust provided an additional $40 million in asset financing. (Disclosure: Apollo is buying TechCrunch’s parent company.)
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Bird to go public via SPAC, at an implied value of $2.3B
Bird, the shared electric scooter startup that operates in more than 200 cities across three continents, said Wednesday it is going public by merging with special purpose acquisition company Switchback II with an implied valuation of $2.3 billion. The announcement confirms earlier reports, including one this week from dot.LA, that Bird intended to go public via a SPAC.
Bird said it was able to raise $160 million in private investment in public equity, or PIPE, by institutional investor Fidelity Management & Research Company LLC, and others. Apollo Investment Corp. and MidCap Financial Trust provided an additional $40 million asset financing. (Disclaimer: Apollo is buying Verizon Media Group, which owns TechCrunch.)