Lakestar founder Klaus Hommels seems on stage at a know-how convention in London on October 21, 2014.
Anthony Harvey | Getty Photographs for TechCrunch
LONDON – The SPAC craze has formally hit Europe.
European tech investor Klaus Hommels on Wednesday launched a clean test signature geared toward taking on an advanced-stage tech firm within the area.
Hommels, the founding father of enterprise capital agency Lakestar, is seeking to increase as much as 275 million euros ($ 332 million) for his SPAC, which is known as Lakestar SPAC I SE.
SPACs, or Particular Objective Acquisition Corporations, are shell corporations which can be created for the only real objective of elevating funds to amass an current non-public firm, in order that the goal firm can keep away from the normal preliminary public providing course of.
Hommels’ SPAC is predicted to commerce in Frankfurt on Monday beneath the ticker LRSW. The German enterprise capitalist’s investments vary from corporations like Fb and Spotify to fintech startup Revolut.
“The European know-how sector at present affords engaging funding alternatives with promising valuations and plenty of glorious progress corporations,” Hommels mentioned in an announcement.
“As a workforce, we’re deeply rooted in Europe’s progress stage and pre-IPO ecosystem and we’ve high-quality entry to belongings in addition to an intensive contracting community.”
Deutsche Financial institution, JPMorgan and Morgan Stanley acted as joint international coordinators within the transaction, in response to a press launch.
Regardless of a banner yr for clean test corporations within the US, Europe has largely missed the SPAC increase. SPACs raised a complete of $ 78.2 billion in 244 IPOs. And 2021 has been no totally different, with the US SPACs already elevating greater than half of what they did final yr.
Solely three SPACs have been listed in Europe final yr, with a web revenue of $ 495 million. And just one SPAC has debuted on the continent to this point this yr, in Amsterdam.
Oliver Samwer, founding father of the so-called “start-up manufacturing facility” Rocket Web, is making a clean test firm that intends to merge with a know-how firm outdoors the USA. However Samwer’s SPAC is listed in New York as a substitute of Europe. An rising variety of New York-listed SPACs wish to purchase know-how corporations in Europe.
Hommels’ SPAC mentioned it would search a know-how deal over the subsequent 24 months. It’s touted because the “first technology-focused SPAC in Europe” and one of many first to convey the US SPAC construction to the continent, permitting traders to redeem their shares if they’re sad with the goal firm.
SPACs are typically structured in a different way within the US in comparison with Europe. And Europe is house to far fewer publicly traded tech corporations than the US, making it tougher for traders and analysts to make comparisons and examine corporations within the sector.