Niccolo de Masi says the year ahead is going to be typified by a “flight to quality”, as the SPAC space matures and prospective partners seek out quality and track record.
De Masi, chief executive of dMY Technology Group, which has taken the likes of Genius Sports and Rush Street Interactive to market, says post-close share price performance will be a key indicator of success.
He predicts that as the space matures, there will be more emphasis on league tables and rankings, ultimately creating the sort of brand recognition that companies in the venture capital space enjoy.
This in turn will see the best-performing SPAC teams benefit and lead to fewer, bigger, better, more proven franchises.
“By the end of 2022 you will see fewer new SPACs, as teams that can drive sustained post-close performance are going to have more capital offered to them,” de Masi explains. “The opposite will be true for those learning on the job.”