Fenwick corporate partner Ran Ben-Tzur was quoted in a recent PitchBook article on what growth-stage companies are looking for in special purchase acquisition company sponsors (SPACs).

The article reported that companies seeking SPAC sponsors to take them public are increasingly focused on the sponsor’s ability to bring in outside investors via a side PIPE deal—also known as a private investment in public equity.

Ben-Tzur said that he has seen several SPAC mergers collapse in cases where SPAC sponsors overvalued companies and there wasn't enough demand from PIPE investors.

The article also noted that some investors have begun to worry that the availability of PIPE capital may be tightening amid market volatility.

"Deals are still getting done, but PIPE investors aren't investing in every deal that they are offered like they were doing a few weeks ago," Ben-Tzur said.

The full article is available through PitchBook.

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