SPAC or SPAM: Dream Exchange Explains What You Should Know About SPACs (Special Purpose Acquisition Companies) and Where They Are Headed

CHICAGO, Oct. 12, 2021 /PRNewswire/ -- What do Jay Z, ARod, Shaq and former Republican Congressman, Paul Ryan, have in common? They all have SPACs, or special purpose acquisition companies, which took off in 2021 with a record $107.6 billion raised in the first half of 2021 (compared to $83 billion in 2020) according to Dealogic.

An increase in interest in public markets during the last 18 months combined with celebrity figures leading up these SPACs has been a recipe for expansion. However, the SPAC is simply a band-aid on a structural problem in our markets that has been around for decades in which small public offerings have virtually disappeared.

Dream Exchange is addressing this problem using a new type of stock exchange called a venture exchange. Once created, this will be a mechanism for investors to invest directly in private companies as if they were listed on a national stock exchange. For more about this new mechanism, Dream Exchange is holding an online seminar on Thursday October 14th at 7:30PM EST specifically on SPACs and creating access to capital for more small businesses. The online seminar is free, but registration is required.

In essence, a SPAC is a mechanism to take a company public. However, when investing in a SPAC, the investment is not in the actual products of a public company as it would be investing in an IPO. No, when investing in a SPAC, investors are pinning their hopes to a team that will evaluate and acquire a company later.

Unfortunately for many SPACs, "later" is coming up quickly. Out of over 589 public SPACs, 445 are seeking a company to acquire and 121 SPAC deals are still pending. According to Bloomberg Law, just 23 SPACs have acquired a target company!

CEO and Founder, Joe Cecala said, "Venture exchanges are a real solution to the underlying market problems that SPACs are seeking to fix. Venture exchanges will provide direct access to capital for businesses and direct access to a safe investing environment for investors."

About Dream Exchange:

Dream Exchange is creating the first black-owned stock exchange in the history of the U.S. In addition, the company has been a pioneer in venture securities which, once created, will allow emerging businesses to list and trade on an approved venture stock exchange. Find out more at www.dreamex.com

Media Contact:
Jane Hayton
[email protected] 
(312) 465-7912

SOURCE Dream Exchange