Close
SPAC - a Risky Way for a Space Startup to Go Public
Going public usually means more trust and financial support for a business from potential investors. Therefore, some shady companies might turn to this idea as a lifebuoy to get additional funding when other tools do not work. Going public can have different forms, one of them being special purpose acquisition companies (SPACs).
What is a SPAC company?
SPAC is a blank check company created specifically to acquire a business later. This model is quite popular among ventures as it allows going public in a simplified way, i.e. without passing through many serious checks and investigations. Instead, the empty company, which is already publicly traded, purchases the one intending to get listed. After the transaction is finished and all the issues settled, a new business appears on the trading market.