Tag: SPAC

By OURCROWD “Prices in the public market are stretched, which is why one should invest earlier in a company’s development cycle.” For 30 years, Alec Ellison helped hundreds of technology companies seal M&A deals that redefined the industry landscape. Since joining OurCrowd in 2016, he’s been putting that expertise to work to cultivate the innovation leaders of tomorrow. “Being on the inside means you can make a bigger difference fundamentally,” says Ellison, Chairman of OurCrowd US. “You can have a greater impact on one narrow area as opposed to a limited impact on many companies. That’s why this was such an attraction to me.” Ellison, 58, took on the role in May 2019 after three years on OurCrowd’s advisory board. He previously worked at Jefferies LLC where he was a Vice Chairman and Executive Committee member, roles he took on after leading the technology investment banking group for many years. He came to Jefferies through its acquisition of Broadview International, where he was President. Ellison, who lives in Greenwich, Connecticut, but hails from Charleston, South Carolina, and has been...

• SPACs offer many advantages over IPOs or raising more private capital• Strategic venture investors have several tools to mitigate the risks and add value The spring selloff of SPAC stocks has prompted concern about the future of this complex merger/IPO mechanism. But recent trends only reinforce the importance of understanding how valuations are set in SPAC deals, which we believe will continue to reshape the market for venture capital exits. Special purpose acquisition companies (SPACs) have accelerated the path to public markets for privately held companies. For years, startups stayed private for longer, backed by massive capital injections from megafunds. Now, the road to public markets has been reopened by SPACs, shell companies established with the sole purpose of raising money through an IPO to eventually acquire another company. SPACS have become a legitimate and attractive option for company founders and investors alike. Still, many questions deserve attention. Why should startups pursue a SPAC buyer? Does the valuation process work without traditional IPO gatekeepers? And how can you reduce risks for investors after the target company is acquired...