SPAC 2.0

Extracted Attributes

• Purpose

  To provide a cheaper, more efficient public market alternative to traditional IPOs

• Key Feature

  Target company in de-SPAC transaction is co-registrant and liable for disclosures

• Concept Type

  Financial Instrument Evolution

• Regulatory Body

  U.S. Securities and Exchange Commission (SEC)

• Primary Proponent

  Chamath Palihapitiya

Timeline

• The U.S. Securities and Exchange Commission (SEC) proposes new rules regarding special purpose acquisition companies (SPACs). (Source: Web Search Results)

  2022-03-01

• The U.S. Securities and Exchange Commission (SEC) approves final rules regarding SPACs, introducing enhanced investor protection and transparency, which defines the 'SPAC 2.0' template. (Date approximated for 'early 2024') (Source: Web Search Results)

  2024-01-01

• Chamath Palihapitiya details his new 'SPAC 2.0' vehicle on the All-In Podcast (Episode 171), designed as a cheaper, more efficient public market alternative, in the context of a dysfunctional IPO market. (Source: Related Documents)

  2024-02-23

Mid-Atlantic Regional Spaceport Launch Pad 0

Launch Pad 0 (LP-0), also known as Launch Complex 0 (LC-0), or Launch Area 0 (LA-0), is a launch complex at the Mid-Atlantic Regional Spaceport (MARS) on Wallops Island, Virginia, in the United States. MARS is located right next to the NASA Wallops Flight Facility (WFF), which had run the launch complex until 2003. WFF still provides support services to MARS launches under a contract with the Commonwealth of Virginia. The launch complex consists of four individual launch pads, LP-0A, LP-0B, LP-0C, and LP-0D, the latter two referred to by tenant Rocket Lab as Launch Complex 2 (LC-2) and 3 (LC-3).

Web Search Results

• Decoding SPAC 2.0: What's Different In The 2025 Revival

  Today, in 2025, SPACs are back, but this time with a more structured form and a new sense of legitimacy. Market participants are calling the comeback “SPAC 2.0” – a wiser, regulated, and investor-sophisticated version of its previous incarnation. This metamorphosis presents a marvellous case study to anyone learning about investment banking or learning financial analytics, since it provides lessons in changing deal-making, valuation, and regulation conditions in the new-age capital markets. [...] For prospective students and professionals weighing the investment banking or financial analytics path, SPAC 2.0 presents an unparalleled case study in contemporary finance. From due diligence and valuation to market psychology and regulatory planning, it captures all the vital components of capital markets today. [...] In the past, sponsors used to pocket huge gains despite poor post-merger results. Now, under SPAC 2.0, sponsors are held to stricter standards. The majority of deals now include provisions for deferred compensation, longer lock-ups, and earn-outs based on performance. These changes make the spoils for sponsors more contingent on long-term investor outcomes. Greater Institutional Involvement through PIPE Investments

• SPACs: Will They Rise Again? - Nasdaq

  The new SPAC 2.0 template constitutes a significant upgrade to investor protection and greater transparency around the entire SPAC process. Even though many observers wonder if the new rules even matter at this point given the precipitous decline in SPACs, we welcome these improvements that upgrade the structure and preserve the SPAC vehicle as a useful tool for capital formation. While these new protections are not without cost, the SEC backed away from several of the most aggressive [...] In January, the Securities and Exchange Commission (“SEC”) approved final rules regarding special purpose acquisition companies (“SPACs”). The rules were first proposed back in March 2022. After nearly two years, and two separate comment periods, the final rules come at a time when SPAC market activity has dropped significantly since the gold rush days of 2021-22. Even so, there is a case to be made this new SPAC 2.0 template will not just survive, but actually improve the quality of companies [...] The final rules address a number of topics, including enhanced disclosure requirements for both the SPAC initial public offerings (IPO) and business combinations between the SPAC IPO and a target company known as a de-SPAC merger (de-SPAC). CFA Institute offered extensive recommendations on what issues need more detail and prominence in SPAC IPO documentation. In fact, CFA Institute’s working group report entitled THE NEW AGE OF SPECIAL PURPOSE ACQUISITION COMPANIES: What Investors Should Know

• SPACs explained

  ### What changed with SPACs? A SPAC used to combine the right to vote (i.e., accept or reject a potential acquisition) with the ability to redeem shares. That is, if you voted to reject a deal, you would redeem your shares. Regulators decoupled those rights (i.e., investors could vote yes or no against a deal and still redeem their shares). In effect, this change has led to most proposed deals going through as planned by the SPAC management. [...] As defined by the US Securities and Exchange Commission, a SPAC is a company with no operations that offers securities for cash and places substantially all the offering proceeds into a trust or escrow account for future use in the acquisition of one or more private operating companies. Following its initial public offering (IPO), the SPAC will seek to identify acquisition candidates and attempt to complete one or more business combination transactions, after which the company will continue the [...] A SPAC—which can also be known as a "blank check company"—is a publicly listed company designed solely to acquire one or more privately held companies. The SPAC is a shell company when it goes public (i.e., it has no existing operations or assets other than cash and any investments).

• Special Purpose Acquisition Company (SPAC) Explained

  The rise of SPACs as a means for sometimes dubious private companies to enter the public markets drew the attention of SEC regulators. They adopted new rules for SPACs in early 2024. “Just because a company uses an alternative method to go public does not mean that its investors are any less deserving of time-tested investor protections,” said then-SEC Chair Gary Gensler. The new rules “will help ensure that the rules for SPACs are substantially aligned with those of traditional IPOs, enhancing [...] These increased disclosure requirements include providing detailed information about conflicts of interest, SPAC sponsor compensation, and potential dilution. The rules require the target company in a de-SPAC transaction to sign off on the registration statement, making it a “co-registrant” and thus liable for the accuracy of the disclosures. This measure aligns SPAC disclosures with traditional IPOs, increasing accountability and investor protection. [...] Definition A special purpose acquisition company is a company formed to raise money through an initial public offering so it can later purchase or merge with an existing company.

• How SPAC mergers work

  A special purpose acquisition company (SPAC) is a company with no commercial operations that is formed strictly to raise capital through an initial public offering (IPO) for the purpose of merging with or acquiring an existing company. As a consequence, an operating company can merge with (or be acquired by) the publicly traded SPAC and in turn, become a listed company in lieu of executing its own IPO. [...] Firstly, the sponsor — typically an executive/investor or team with significant experience — decides to launch a SPAC. A SPAC is generally based on an investment thesis focused on a sector and geography, such as the intent to acquire an education technology company in North America. [...] Venture Capital Bootcamps Bootcamps Online learning Online learning Notes Notes Europe Europe Asia Asia Africa Africa LATAM LATAM Brazil Brazil Robotics Robotics Education in 2030 Education in 2030 Artificial Intelligence Artificial Intelligence SDG 17 SDG 17 SDG 16 SDG 16 SDG 15 SDG 15 SDG 14 SDG 14 SDG 13 SDG 13 SDG 12 SDG 12 SDG 11 SDG 11 SDG 10 SDG 10 SDG 9 SDG 9 SDG 8 SDG 8 SDG 7 SDG 7 SDG 6 SDG 6 SDG 5 SDG 5 SDG 4 SDG 4 SDG 3 SDG 3