Monday, May 10, 2021
Welcome to the
Business & Legal Developments in Silicon Valley Newsletter, a monthly round-up of pertinent updates and articles from Foley & Lardner LLP. Today we are highlighting SPACs, NFTs and looking at another growing tech trend. The tech world is, of course, always changing, but the ongoing and rapid digital transformation driven by the pandemic is accelerating everything virtual, maybe even virtual bubbles.
Cooling SPACs
Pitchbook noted recently that “SPAC IPO activity exploded in 2021, with aggregate capital raised already surpassing the total in 2020 by 19.8% in just over one quarter.” New SPACs ground to a halt in April as the SEC put down the regulatory damper, and capital markets struggled to find buyers for PIPEs. While there was a massive increase in the first quarter, pent-up demand is finally being realized.