View profile

Mobile News - Week of March 8, 2021

Issue #132 — View online — Suggest a link

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
Did you enjoy this issue?