The SPAC Opportunity: Andy Tai of Goldman Sachs
We are pleased to invite back to Indo Tekno studios Andy Tai, Managing Director at Goldman Sachs, in order to explore the SPAC ("Special Purpose Acquisition Company") as a means of bringing promising Indonesian tech companies to the public markets. This marks the second episode of our "From Warung to Wall Street" podcast series.
A SPAC is a company which, at the outset has no commercial operations. It is formed strictly to raise capital through an initial public offering (IPO) for the purpose of acquiring an existing company. Also known as "blank check companies," SPACs have been around for decades.
However, it is only recently that discussions around the opportunity for SPAC's to support the public listing of promising Indo and SEA tech companies have resurged, with the September 24th announcement of the Bridgetown SPAC. Backed by billionaire entrepreneur and VC Peter Thiel, Bridgetown seeks to raise $575 million, and intends to invest the proceeds in "new economy” start-up's in Southeast Asia.
Andy estimates that an astounding 125 SPAC's have been raised in 2020 year-to-date, representing over $40 billion in funds raised. Roughly half of these SPAC's have a tech angle to their story. Please join us while Andy walks us through the opportunities, and challenges, that the SPAC represents for Indonesia's start-up's and the investors that support them.