I've made a lot of money off of #SPACs and expect it to continue into next year, but am closely watching some risks.

I think the larger and more successful companies will continue preferring #IPO route, and the new SEC rules for direct listing will likely become the default.

Main advantage of #SPAC is the relationship with sponsor management and predictability of valuation with option of PIPE.

Therefore primary factor I seek in a #SPAC is quality of management team. Googling for the website and reading bios, as well as the SEC S-1 filing, often linked on website.

If I stumble on a #SPAC with an interesting acquisition target, I'll want to verify the sponsor management has a solid track record.

One really important consideration of a #SPAC is that the valuation is often ambitious to incentivize a hot target; thus it's rarely reasonable to be paying high above NAV until the execution is proven to be exceeding those already ambitious targets.

This should probably take multiple quarterly revenue beats or demonstration of proprietary technology with backlog of strong contracts.

Paying way above NAV early on is an indication that valuation was off or there is just some sex appeal. With all the #EV #SPACs I think it's the latter.

$QS is crazy. Who's paying all that future revenue, when? $VWAGY? Shouldn't they get a higher valuation on increased revenue expectations? I haven't done the research to pick winners amongst #EV #SPACs. Cars, #batteries, #lidar, charging... So much competition. $TSLA far ahead.

#SPACs I do like have strong moats in terms of management, technology and ideally revenue trajectory or backlog.
Post-merger: $SKLZ $DM $TRIT
Pre-merger: $SRAC $CFII $PCPL
Pre-LOI (strong mgmt): $CMLF $BTWN $AGC $TWCT $HAACU $XPOA

I already wrote a thread on $SRAC. I'd just caution that at these levels you're already assuming it's undervalued. You are either betting on a near term bubble or plan to hold long term with expectation that market cap will naturally grow, with which I am indeed comfortable.

$SRAC is an example of pre-revenue #SPAC that does have an interesting moat in terms of management and technology with a solid trajectory of contract backlog. Water-based propulsion is an edge over competitors.

$DM is a great pick and shovel play for #EVs and #aerospace and has an #ESG component. But they do face competition from $XONE. Counting on management and board to execute on growth through innovation and M&A with their war chest and valuation.

$TRIT is interesting because it sits at the nexus of growth in Asia, commodities and #blockchain. Trade finance will boom with emerging markets and China. Huge opportunity to shift the spottiness to ethereum blockchain. Bonus: based in Singapore, the physical nexus of trade.

$CFII is pre-merger with $VIEW: smart window technology. Massive backing from $SFTBY, huge patent portfolio and backlog. Interesting play at the nexus of real estate re-emergence, #ESG, and #AR. Huge clients. Built in The USA. Opportunities to expand into residential and autos.

$PCPL is pre-merger with E2OPEN, supply-chain software with great management, customers and growth. Supply-chain mgmt opportunity with recent disruptions from virus and shifting trade alliances.

Probably one of the most interesting is $SKLZ. Post-merger with exposure to massive growth in gaming, gambling, and mobile. Meteoric revenue growth with opportunities to expand to new markets and higher quality content. Institutional accumulation.

Many interesting pre-LOI SPACs. I like these only when they're close to NAV as an alternative to cash with upside potential. Picked solely in terms of management pedigree. Too many to comment on (which may also be a bad sign), so I'll only mention my favorite.

$CMLF is targeting biotech or #synbio, sponsored by preeminent investor in the space, a board of the CEOs of three of the best operators in the space. The team is just bananas and I'm hopeful they'll attract an awesome company that wants to work with them (if they're not already)

I'll close by reiterating that #SPACs are super interesting and lucrative but their performance is often symptomatic of the excess liquidity in the market. Long term the successes will be idiosyncratic. I'd be very mindful of valuation and competition.

I'm relatively new to the Bird App, so not sure who will want to read this or how it gets seen besides just tagging lots of stuff. Comments and feedback welcome. Many ideas have been sourced from #fintwit so happy to try to give back.

cc @SpacGuru literally because of your handle. Cheers