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Mobile News - Week of March 8, 2021

Issue #132 — View online — Suggest a link
Mobile
The latest news and information about startups and innovations from the mobile world.
Is the SPAC boom just too good to be true? 
In 2019, 59 SPAC IPOs raised $13.6 billion. In 2020, 248 SPACs raised $83 billion. In 2021, 228 SPACs raised $73B and it’s only March folks! 
Just this past week, Warburg Pincus launched two SPACs ($250M Warburg Pincus Capital I-A and $500M Warburg Pincus Capital I-B) and Khosla Ventures launched a $300M Khosla Ventures Acquisition SPAC. Even Jay-Z (Subversive Capital Acquisition), Serena Williams (Jaws Spitfire Acquisition) and Steph Curry (Dune Acquisition) have launched their own SPACs. 
The majority of these SPACs are averaging about $250M. The minute they go public, the clock is on and it has up 24 months to find a company to merge with. 
From a founder and CEO’s point of view, the SPAC route to go public is much less risky for the company compared to an IPO. The CEO sign a deal with the SPAC sponsor for a fixed and negotiated price, and the deal is done! From an venture investor’s point of view, this is certainly another way for companies to exit and go IPO.
However from a public market investor point of view, do these companies deserve to go public?  Do they have consistent and predictable revenue with a healthy growth rate? Do they have a strong management team?
Will this SPAC bubble burst in 2021? Only time will tell…
Here are the top mobile news this week >
  • Apple - iPhone 12 mini 70% reduce production
  • Apple - UK government Appstore investigation
  • Paramount - 277k downloads in 5 days
  • FCC - Payment app scam
  • T-Mobile - 5G rollout

Apple slashes planned iPhone 12 mini production for 1H
UK government investigates Apple over suspected anti-competitive behavior
As More Consumers Adopt Payment Apps, Scammers Follow
T-Mobile’s long-promised 5G home broadband will launch later this month
Techstars Startup Digest Mobile is curated by:
Edith Yeung Edith Yeung - General Partner at Race Capital
edith.yeung@startupdigestmail.com
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