Below is an easy to read article about SPACs and their use in Medtech investments.
Blank Check Companies’ Hunt For Innovative Medtech Start-Ups To Heat Up Further, Experts Predict (MedTech Insight)
Executive Summary
As the SPAC boom continues, innovative medtechs are expected to become acquisition targets.
January kicked off with a flurry of SPACs, or special-purpose acquisition companies, and financial experts believe that these financing vehicles will continue to gain steam, with some targeting medtech.
Jonas Grossman, president and managing partner of Chardan Investment Bank, which focuses on disruption and innovation in the health care technology space, said that 2020 was a banner year for SPACs – or “blank check companies” as SPACs are often called – because they are formed specifically to find a start-up, buy it and take it public. While the majority of SPACs looking for a health care target were focused on biotech in 2020, Grossman foresees that in 2021: “We’ll see more medtech deals.”
According to Chardan’s statistics, as of 27 January, 40 health care-focused SPACs with $7.2bn to deploy were actively looking for a company to merge with.
About half are focused on biotech w...
