Breakout Sessions with Facilitated Discussions #2: Liquidity Crunch: Demystifying SPACs and Direct Listings

Economic turmoil caused by the Covid-19 pandemic means that VCs looking for an exit must assess a broader host of variables than ever before. Airbnb was supposed to ignite a boom of tech startup direct listings this year, but then the pandemic hit and upturned the market. Many VCs remain optimistic about the longer term prospects of direct listings, particularly as options are being considered or developed to allow companies to raise funds through or in conjunction with them. At the same time, SPACs are proving to be the latest challenge to traditional IPOs, with several large SPACs set to go public in 2020. This session will help founders, investors, and board members navigate the ins and outs of SPACs and direct listings, two of the lesser known but increasingly popular exit strategies.

Reading Materials:

• Direct Listings: Going Public Without an IPO. by A. Pitts. D. Bennett, M. Mariani and M. Cook. June 24, 2020
• Direct Listings vs. IPOs: Liability and Litigation, Part 2. By Priya Cherian Huskins, Esq. Woodruff-Sawyer. April 8, 2020.
• Going Public Circa 2020; Door #3: The SPAC. By Bill Gurley. Above the Crowd. August 23, 2020.
• IPO and Direct Listing Planning Checklist. Fenwick
• Special Purpose Acquisition Companies: An Introduction. By Ramey Layne and Brena Lenahan. Vinson & Ekins LLP. July 26, 2018.
• Why the Day One IPO “Pop” Is Overhyped. By Tanay Jaipuria. Medium.com July 22, 2020.
• Why SPACS Are the New IPO. By Bryne Hobart. Medium.com. July 27, 2020.