“I get an email almost every morning from some SPAC seller telling me to do a SPAC with them,” said Johnny Boufarhat, CEO of Hopin, a virtual events platform. “It’s interesting, but it also doesn’t make sense for us.” Instead, Boufarhat said he wants his London-based company, which is valued at $5.65 billion, to be ready for a traditional initial public offering (IPO) later this year or in 2022. Hopin is one of several leading European startups, also including Europe’s most valuable fintech startup Klarna, that told Reuters they are steering clear of SPACs, or special-purpose acquisition companies. Their caution, driven by fears over heavy costs and regulation, underscores the potentially risky nature of this innovative form of financial alchemy, although bankers said the market was in its infancy and much could change in the future.
Supantha Mukherjee, Business & Financial News, U.S & International Breaking News | Reuters, 03/29/2021 01:05:00