SPAC: the hottest four-letter word in 2020! Special-purpose acquisition companies or “SPACs”, which are sometimes referred to as blank check companies, are entities that go public and raise money from investors so that the IPO proceeds can be used to invest in and acquire companies.
The frequency of SPACs has been on the rise in recent years, but 2020 represents a quantum leap, one that's occurred despite the absence of any major changes to how they function or any other relevant regulations. According to SPAC Research as of Nov 16, 2020, this year has seen 178 new SPACs with $64.8BN raised, up from 59 with $13.6BN raised throughout all of 2019 ($1.8BNN raised in 2014). It's been a remarkable run—all the more so considering this year’s craze came almost entirely out of the blue. It's a strange situation: were investors underutilizing SPACs in the past, or are they overutilizing them now?
The goals of a SPAC are similar to those of a traditional IPO, but a SPAC offers a simpler and expedited path to the public market—and has attracted some big names, including Reid Hoffman who teamed up with Mark Pincus to raise a $690MM SPAC (Reinvent Technology Partners) in September and a follow on $230MM SPAC (Reinvent Technology Partners Z) in November.
Please join Susan Winter and Devika Patil from SVB as they discuss with Reid, Co-Founder of LinkedIn, Partner at Greylock Partners, and and Co-Lead Director of two Reinvent Technology Partners SPACs as they discuss SPACs as a different path to going public, the value of "venture capital at scale" that SPACs can offer, and why SPACs are gaining popularity now.
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An accomplished entrepreneur, executive, and investor, Reid Hoffman has played an integral role in building many of today’s leading consumer technology businesses. In 2003 he co-founded LinkedIn, the world’s largest professional networking service. In 2009 he joined Greylock. He currently serves on the boards of Airbnb, Apollo Fusion, Aurora, Coda, Convoy, Entrepreneur First, Microsoft, Nauto, Neeva, Xapo, and a few early stage companies still in stealth. In addition, he serves on a number of not-for-profit boards, including Kiva, Endeavor, CZI Biohub, Do Something, New America, the Stanford Institute for Human-Centered AI, and the MacArthur Foundation’s 100&Change. He is the host of Masters of Scale, an original podcast series and the first American media program to commit to a 50-50 gender balance for featured guests. He is the co-author of three best-selling books: The Start-Up of You, The Alliance, and Blitzscaling. He is an Aspen Institute Crown Fellow, a Marshall Scholar at Oxford, and a graduate of Stanford University.
Devika Patil is a managing director in the Venture Capital Relationship Management Group at SVB, where she provides emerging to late-stage VCs and their portfolio companies with the banking tools they need to succeed. Her financial wheelhouse includes tailored strategic capital solutions; proprietary, operational, tactical and industry insights; private banking; and wealth advisory services. As a self-described extrovert, Devika (pronounced Dave-ika) is passionate about building and cultivating relationships with the VC community and bridging impactful connections in the tech community. She thrives on working with the CEOs and founders of investor-backed companies across all sectors — enterprise, consumer, fintech, hardware and the life sciences.
Her extensive background in corporate banking combined with her natural fluency in interpersonal skills makes Devika as accomplished at fostering relationships with C-suite execs as she is at analyzing credit risk profiles of complex businesses. Prior to joining SVB in 2018, Devika was a vice president at the Royal Bank of Scotland, where she was the West Coast corporate banking head of the gaming and homebuilding group. She launched her career at J.P. Morgan as an investment banker. She holds a bachelor’s degree in economics and international relations from Tufts University in Medford, Mass.
Dedicated to giving back to her community and beyond, Devika serves in a variety of volunteer capacities. She is on the Board of Fellows at The Harker School, one of the nation’s top schools for high-quality, well-rounded education to students in pre-K through 12, located in Silicon Valley. She is also the Digital Ambassador at the Institute for Education, a Washington, D.C.–based nonprofit, whose mission is to recognize and promote leadership, civility and finding common ground, locally, nationally and globally. She is currently a member of the Town of Atherton’s Audit and Finance Committee and the Board Treasurer at The Weekend To Be Named Later, a nonprofit fostering collaboration between progressive leaders in government, the arts and entertainment, finance, nonprofits, technology and education.
These days, Devika calls Atherton, California, home, and enjoys traveling, cooking, reading and Kathak (Indian classical dance) in her free time. Another one of her great passions is wine; in fact, Devika first learned of SVB through its wine division. Ask her about her favorite sips, Melka Métisse and Favia Cabernet, and when you do, feel free to converse in French, Hindi, Gujarati and Punjabi, as she speaks them all. You could also chat with her about the West Wing — not the TV show, but the actual offices; Devika and her family lived in Washington, D.C., and served in the West Wing for two years during the Obama administration.
Susan Winter heads up SVB’s Global Loan Capital Markets overseeing all lead distribution for Technology, Life Sciences, Sponsor Finance, Project Finance and Global Fund Banking. Prior to joining SVB in 2010, Susan served as a Director and Associate at Barclays and JPMorgan, respectively, in Leveraged Finance and High Yield Capital Markets, and as a Vice President in M&A at the Blackstone Group.
Susan earned a BA in Economics from Colorado College and an MBA from Duke University.
Susan is a Chairman of the Board Emeritus for Holy Family Children’s Center; Board Director and Treasurer of her local community, and an active member of CASA for children’s welfare and the Coastside Landtrust. She is the 2020 recipient for one of SVB’s highest honors, the Biggerstaff Award, granted for employees with outstanding exhibition of core values of integrity and leadership.
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