Investors’ SPAC push could revamp the private market money game

Since last year, we’ve been tracking the growing list of capitalists who got into the SPAC game. You can read an interview we conducted with Amish Jani, the co-founder of FirstMark Capital, about his SPAC here. And if you need a refresher on all things SPAC, we have that for you as well.

This morning, I want to better understand the trend by parsing a few new venture capitalist SPACs. We’ll examine Lerer Hippeau Acquisition Corp. and Khosla Ventures Acquisition Co. I, II and III. The SPACs are, somewhat obviously, associated with New York-based Lerer Hippeau and Menlo Park’s Khosla Ventures. And all four dropped formal S-1 filings last week.

The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.

Today’s topic may sound dry, but it really does matter. As we’ve reported, Lux Capital is in on the SPAC wager, along with Ribbit and, of course, SoftBank. Adding our latest names to the mix and you have to wonder if every VC worth a damn in the future will have their own raft of SPAC offerings.

In that way, as some late-stage venture capital funds invest earlier — and now later — full-service VC outfits will offer first-check to final liquidity, will such a full-stack venture outfit be able to win more deals than a group offering a limited set of financing options? If so, the recent venture capital SPAC wave could (Read more...)