The Big Read: ‘What Am I Going to Do Now?’: Fired Crypto Workers Weigh Life After the BoomRead Now

Illustration by Josh Brill.

What’s Next for SPACs: Fewer ‘Flying Cars,’ More Focus on Revenue

Photo: Illustration by Josh Brill.

“Flying cars” is a term that’s been tossed around a lot when it comes to SPACs. For detractors, it’s become shorthand for deals that give these blank-check transactions a bad name.

But while flying-taxi companies are indeed among the pre-revenue or minimal revenue firms that have made their way to public markets via a special purpose acquisition company, firms with established operations and financial track records are feeling the pain, too. Nearly 80% of companies that went public via a blank-check merger are trading below the $10 per share SPAC issue price.

Thanks to an oversaturated SPAC market and increasingly tough criticism from top securities enforcer Gary Gensler, some market watchers say companies will have to think a lot harder about the risk-reward tradeoff—particularly those that don’t yet generate revenue. And companies that have agreed to but not completed SPAC mergers, even if they have plenty of revenue to show, could be in for a rough ride the next few months with public valuations cooling.

Get access to exclusive coverage
Read deeply reported stories from the largest newsroom in tech.
Latest Articles
 
The Weekend startups culture
Knocked Down, Dragged Out, and Laid Off
Knocked Down, Dragged Out, and Laid Off
Hi, welcome to your Weekend! It was a tough week (and month and quarter) for people in tech. And that goes double for folks who work in crypto, which has seen a calamitous drop from its pandemic-era heights.Many might feel a hint of schadenfreude about the humbling of crypto. Certainly, its leaders seem worthy of comeuppance, after pumping the space with enough hot air and hype to power a...
Latest Briefs
 
Twitch’s Creators Chief Departs Amid Payout Cutbacks
Amazon Informs Employees It Miscalculated Raises
Google CEO Addresses Employee Questions about Cost-Cutting
Stay in the know
Receive a summary of the day's top tech news—distilled into one email.
Access on the go
View stories on our mobile app and tune into our weekly podcast.
Join live video Q&A’s
Deep-dive into topics like startups and autonomous vehicles with our top reporters and other executives.
Enjoy a clutter-free experience
Read without any banner ads.
Data Point startups venture capital
Venture Firms’ $290 Billion ‘Dry Powder’ is About to Revive Startup Funding
Startup founders should expect a tidal wave of venture capital interest next year as a record level of dry powder pressures VC funds to step up their investment pace, according to a new analysis of these cash reserves.
Exclusive amazon entertainment
Netflix’s New Ad Chief Has an Appetite for Danger
Before Netflix hired Jeremi Gorman as its new advertising chief to bring growth back to its struggling business, Gorman had compiled a colorful résumé of professional and personal accomplishments.
Patrick Collison. Photo by Getty Images.
Exclusive startups venture capital
Stripe’s Early Stock Awards Could Spur IPO Plans
Stripe founders John and Patrick Collison have indicated the payments software pioneer, valued in its last fundraising at $95 billion, is in no rush to go public.
Art by Mike Sullivan
True Value google amazon
The Haziness in Microsoft’s Cloud Numbers
Here’s a quick question for enterprise software acolytes out there: which tech giant is bigger in cloud, Microsoft or Amazon?
startups venture capital
Debt Pitches Are in Vogue, but Not All Tech Startups Are Biting
When bankers from Morgan Stanley pitched cloud security firm Wiz last month about raising money through an issue of convertible notes, Wiz could have become the latest startup to pursue a financing tool that’s suddenly in vogue.
Illustration by Matheus Costa.
apple crypto
How Apple’s App Store Policies Squeeze NFT Startups
Non-fungible tokens, like much of the crypto world, are in regulators’ and lawmakers’ crosshairs.