Tech Transfer eNews Blog
University-Industry Engagement Advisor

Coming next week — SPACs and University Start-ups: Understanding and Assessing the Pros and Cons

By Jesse Schwartz
Published: November 23rd, 2021

SPACs (Special Purpose Acquisition Companies) have become one of the hottest IPO trends, in large part due to the global pandemic and its effect on the stock market. This places university spinouts in an attractive position as SPAC managers are actively seeking M&A opportunities, and university start-ups are looking for viable options to go public. These new entities present real advantages, but pursuing a SPAC exit is anything but cut and dried.

These so-called “blank check” companies allow even an undersized start-up to go public and raise significant capital faster than it would with a conventional IPO. They can close a deal much faster compared to the cumbersome process of registering an IPO with the SEC, and they are a much more flexible vehicle for fundraising. Universities are just starting to turn attention to SPACs, and in a high profile deal worth $2 billion, Duke University spinout IonQ announced it had entered into a merger agreement with dMY Technology Group, a SPAC. 

However, SPACs are basically shell companies that have no commercial operations — leaving them open to controversy and risk. To assist TTOs and their start-ups in assessing the possibility of a SPAC transaction, we’ve scheduled this informative webinar: SPACs and University Start-ups: Understanding and Assessing the Pros and Cons, scheduled for next Tuesday, November 30, and featuring Michael J. Blankenship, partner in the Houston office of Winston and Strawn, LLP.

For complete details or to register, click here

Also coming soon:

Posted under: Distance Learning, Tech Transfer e-News

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