Reinvent Technology Partners, a brand new particular function acquisition firm fashioned by famed investor and serial entrepreneur Reid Hoffman, Zynga founder Mark Pincus and veteran hedge fund supervisor Michael Thompson, filed Monday for a $600 million preliminary public providing.
The SPAC was fashioned by Hoffman, Pincus and Thompson, previously of BHR Capital, with the intention of merging with a know-how firm. Thompson shall be director, CEO and CFO. Hoffman and Pincus are co-lead administrators. The firm plans to checklist on the NYSE beneath the image RTP.U. Once, and if, the Reinvent Technology Partners raises the $600 million, the capital will transfer right into a blind belief till its administration crew decides which firm it desires to amass.
SPACs are blank-check corporations which can be fashioned for the aim of merging or buying different corporations. SPACs have turn out to be an more and more widespread means in 2020 for venture-backed corporations to go public with out having to take the standard IPO path. In the previous a number of months, numerous venture-backed corporations have merged with SPAC corporations in lieu of a conventional IPO course of, together with on-line used automobile market startup Shift Technologies, lidar corporations Luminar and Velodyne Lidar and a handful of electrical automobile startups equivalent to Canoo, Fisker Inc., Lordstown Motor and Nikola Motor.
In January, Axios reported that Pincus and Thompson, with Hoffman as an adviser, have been elevating as much as $700 million for a brand new funding fund that deliberate to deal with publicly traded tech corporations in want of strategic restructuring.
Monday’s submitting fills in a few of the particulars. The mind belief that’s Hoffman, Pincus and Thompson seem to view this SPAC as one other means to be a brand new type of enterprise capital accomplice for a tech firm set to go public.
Here’s the complete letter from Hoffman and Pincus, which was included within the submitting:
We consider there’s a want for a brand new, further sort of enterprise capital that helps corporations at scale pursue innovation and step operate progress long gone their IPOs.
Throughout our careers as entrepreneurs, buyers, and administrators, we’ve got been college students of why some tech corporations maintain as market leaders. Often folks view these corporations from the skin in
as good, uninterrupted progress tales that have been virtually pre-ordained. However, we understand that behind these legendary progress tales are many exhausting fought cycles of invention and reinvention. Invention is when an organization builds a brand new product and achieves progress in an adjoining market, equivalent to Amazon creating AWS. Reinvention is when an organization has to adapt its core services to proceed rising in an present market, as Netflix did transferring from DVDs to streaming.
For many public tech corporations — particularly mid-cap sized — these cycles can show difficult to navigate whereas sustaining investor alignment. We went via our personal invention and reinvention cycles whereas public at Zynga and LinkedIn, and it wasn’t straightforward.
We are excited to be a brand new type of enterprise capital accomplice on the desk for one of many many tech corporations set to go public over the subsequent few years and to assist it preserve a progress mindset, be daring, and go for it within the face of stress to ship quarterly outcomes.
We hope our expertise, concepts, and insights could make a distinction as we accomplice with a founder and CEO as they construct a market-leading firm that delivers services that matter in folks’s lives.