Billionaire and Celebrity Endorsements Lure Retail Investors to the SPAC Craze

New SEC rules for SPACs

Kunkle, of Philadelphia, runs a website for options traders. He’s used to spending his days talking about trades with people who see themselves as being on the vanguard of investing trends. So he was struck last month when he got a text about a special-purpose acquisition company — or SPAC — from his mother, who… Continue reading Billionaire and Celebrity Endorsements Lure Retail Investors to the SPAC Craze

Beazley Launches D&O Product Suite for US-Domiciled SPACs

Beazley on cyber premiums

Specialist insurer Beazley has launched a directors’ and officers’ (D&O) product suite designed specifically for US-domiciled Special Purpose Acquisition Companies (SPACs). Beazley’s new D&O products for SPACs offer dedicated coverage for either the individuals, or the entity and individuals combined, to provide greater transparency and clarity about insurance coverage, from the initial public offering (IPO)… Continue reading Beazley Launches D&O Product Suite for US-Domiciled SPACs

SPAC Frenzy Emboldens Silicon Valley Startups to Forgo Venture Funding

New SEC rules for SPACs

California aerospace startup Archer Aviation Inc. has a multibillion-dollar vision of flying people around town in autonomous electric helicopters. It doesn’t have revenue or a vehicle ready for liftoff, but that hasn’t slowed the three-year-old company. Instead of toiling away in obscurity with a shoestring budget, the traditional way for startups to spend their formative… Continue reading SPAC Frenzy Emboldens Silicon Valley Startups to Forgo Venture Funding

SPAC Flop Is Test Case for Disgruntled Investor Lawsuits

Investors sue Lighthouse Insurance Company

Waitr Inc. never had the resources of rivals Grubhub Inc. and UberEats. Yet in November 2018 the online food ordering and delivery business went public through a merger with blank-check firm Landcadia Holdings Inc. Landcadia had some powerful names behind it. Tilman Fertitta, a billionaire restaurateur, and Richard Handler, the chief executive officer of Jefferies… Continue reading SPAC Flop Is Test Case for Disgruntled Investor Lawsuits

Investors in SPACs Need to Know the Real Deal: Bloomberg Editorial

It’s hard to believe anyone would pay $10 for $7 worth of a company’s shares. Yet that’s roughly what a lot of investors have been doing, by participating in a financial innovation known as a special purpose acquisition company, or SPAC. See related article. People have every right to give away their money. But the… Continue reading Investors in SPACs Need to Know the Real Deal: Bloomberg Editorial