Count Sam Yagan among those who board the SPAC train.
The seasoned Chicago entrepreneur and tech investor plans to raise $ 200 million in an IPO for a special purpose acquisition company called Corazon Capital V838 Monoceros, according to a recently filed prospectus. The Cayman Islands-incorporated company takes its name from the Chicago-based venture capital firm led by Yagan and his longtime business partners Steve Farsht and Phil Schwarz.
The members of the PSPC Board of Directors include Mike Gamson, an executive and technology investor from Chicago who is CEO of software maker Relativity; digital marketing manager Brooke Skinner Ricketts, who oversees products and marketing at Cars.com; and Christian Rudder, who co-founded online dating site OkCupid with Yagan.
The number of PSPCs, or blank check companies formed to acquire unspecified companies by raising funds from investors in the public markets, has exploded. So far this year, 189 PSPCs have gone public, up from 248 last year and just 59 in 2019, according to SPAC Insider.
Yagan, Farsht and Schwarz lifted two venture capital funds under the aegis of Corazon, a fund of $ 13 million and a follow-up of $ 40 million. A PSPC would give them much more capital to work, up to $ 230 million, if the underwriters, led by Citigroup, exercised an over-allotment option. Instead of taking stakes in startups, they would outright buy out companies.