The SPAC Podcast: Special Purpose Acquisition Company

What Is the Ideal SPAC Target?

Joshua Wilson

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What makes a company the ideal SPAC target today?

According to venture investor Delon Turner, the answer is increasingly tied to technology.

In this clip, Delon talks with host Michael J. Blankenship and explains that while FinTech and software dominated the 2021 cycle, today’s SPAC targets are shifting toward:
• Artificial intelligence
• Machine learning technologies
• Data center infrastructure
• Software platforms supporting emerging tech ecosystems

Institutional investors are looking for sectors that can sustain long term growth and maintain stock performance after listing.

The key question investors ask: Does this company operate in a sector with enough momentum to deliver long term shareholder value?



Disclaimer: Michael J. Blankenship is a licensed attorney and partner at Winston & Strawn LLP. Joshua Wilson is a licensed Florida real estate broker and holds FINRA Series 79 and Series 63 licensure. The content of this podcast is for informational and educational purposes only and should not be considered legal, financial, or compliance advice. All views and opinions expressed by the hosts and guests are their own and do not necessarily reflect the policies or positions of any regulatory agency, law firm, organization, or employer. Listeners should consult their own legal counsel, compliance teams, or financial advisors to ensure adherence to applicable regulations, including SEC, FINRA, and other industry-specific requirements. This podcast does not constitute a solicitation or recommendation for any financial products or services. Let's 

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Michael Blankenship: And let's just talk about the target. So what's the ideal target? And from the various parameters, right? Industry evaluation vertical in your view, what do you see as the ideal SPAC target? 

Delon Turner: I think the ideal SPAC target, it changes with the markets. But with technology, everything is driven right now by technology.

Back in 2021 and 22, you've seen a lot of emphasis on FinTech software. And those verticals were really the hot ticket items to where people were trying to figure out could this company have the valuation needed to go to market? That has changed. Now, there's still some emphasis on FinTech, but more with AI driven, machine driven technology firms.

Data centers are also a really, a hot topic. And software still is there, but it's a combined of those two entities that are allowing these companies to really hit that valuation target, to be able to list it on a publicly traded market, whether it's the NASDAQ or New York Stock Exchange. So I think the institutional dollars are looking at the verticals that have legs that could sustain a a stock price and could deliver that value to shareholders as well as the growth mechanisms.

We know all markets don't grow at the same rate. Some are more ripe than others and more mature. We're looking at verticals that allow us to grow with the company and the teams.