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Why SPACS Are Flailing as Market Conditions Shift



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Matt Higgins, a former judge on the reality TV show “Shark Tank,” is an experienced investor whose firm, RSE Ventures, helps young companies build their businesses.So it was no surprise that in November 2020, Mr. Higgins embraced one of Wall Street’s biggest recent obsessions by launching a SPAC. Special purpose acquisition companies — known by their acronym — are shell entities that sell shares to the public and use those funds to buy an operating business. Investors get their money back if the SPAC hasn’t found a business to buy within a two-year window.Last summer, Omnichannel Acquisition, the SPAC backed by Mr. Higgins, agreed to buy Kin Insurance, a fintech company. But in …

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