Special Purpose Acquisition Companies (SPAC) are attracting late-stage Proptech startups because they enable them to quickly list their stock on public exchanges without months of scrutiny and roadshows. SPAC’s are publicly listed entities and exist for the sole purpose of merging with a private business.
Some industry executives have provided a note of caution, “This is just a warning signal that we should be cognizant about an ever frothier market,” said Jeffrey Berman, general partner at the real-estate-focused VC firm Camber Creek.