Why Founders Must Start Preparing For A SPAC Now

SPACs have moved with astounding speed from the fringes of the financial world to become a mainstream phenomenon. The U.S. markets ignited this trend last year, and now they are finally coming to Europe.

This has touched off a fierce debate about whether SPACs are good for the economy and startups or whether they are creating a dangerous financial bubble. While there are valid points on both sides, in the end, a SPAC is like most financial instruments: Another tool that can be useful for achieving goals or squandered if the holder is irresponsible.

In either case, SPACs are here, and it’s critical that startup founders understand them. SPACs have the potential to help companies accelerate their growth. Fast is good. Speed is crucial for succeeding at a global scale.

Yet this SPAC-driven speed requires not just educating oneself, but dramatically shifting the team’s thinking about how and when an exit might occur. In my conversations with early-stage companies, it’s clear that most founde…