SPAC
Definition
SPAC: A SPAC is a publicly traded company created solely to merge with or acquire a private company, taking it public. SPACs offer an alternative path to going public with more pricing certainty and speed than traditional IPOs, though they've faced increased regulatory scrutiny.
Example Usage
“Instead of an IPO, we merged with a SPAC, giving us a faster path to public markets with a known valuation.”
Common Misconceptions
Related Terms
IPO
An Initial Public Offering (IPO) is when a private company offers shares to the public for the first time on a stock exchange. IPOs provide liquidity...
Acquisition
An acquisition occurs when one company purchases another, either for cash, stock, or a combination. For startups, being acquired is a common exit path...
Valuation
Valuation is the estimated worth of a company at a given point in time. Pre-money valuation is the company's value before receiving new investment, wh...
Explore More Resources
Browse Tools
Discover 100+ vetted tools for every stage of your startup journey
Explore all toolsBuild Your Stack
Take our personalized quiz to get tool recommendations for your startup
Start the checklistRecommended Reading
Curated books to help you learn, grow, and succeed as a founder
View book recommendationsListen & Learn
Top podcasts covering startups, product, growth, and entrepreneurship
Discover podcastsHelp us improve this definition
See something that could be clearer or more accurate? Let us know.