Our startup is in the process of getting acquired and the buyer is promising a SPAC to happen at an unrealistic valuation

[dudr17]

@enidan 11.6x valuation is not unrealistic. It really depends your growth rate and market size your business could reach at the end. If your TAM is very high, you can get much more revenue multiplication. I know so many startups are valued at only 4-5x of ARR, because of smaller TAM. I don't have any experience of SPAC, but, the hype on SPAC disappears nowadays compared to 1-2 years ago.

 

[613jono]

@enidan Hey equity is equity. You’ve put in the work would you grow bigger without them. Had a similar at a job I’m at. Where everyone’s equity was converted to spac shares.

I would say that on the whole I don’t think space perform that well and don’t get shareholders the same market demand because there’s no S1 for other investors Andi at space go public and seem to fizzle so for pre spac equity holders they don’t seem to get their huge payday.

Yes you’d be public and could finance that way. But you need incoming investors who want to invest and the power of their demand to increase your worth.

 

[harmony77]

@enidan Why would you trade your illiquid stock for someone else's illiquid stock?

Unless you are distressed or want to walk away from the business, this is very suspect.