Insurtech Hippo Holdings has ‘SPAC Remorse’

In 2021, about 200 businesses merged with special purpose acquisition companies as a way to go public. Holdings, an insurtech, now wishes it hadn't taken part in the so-called SPAC euphoria, Fortune reports.

Hippo was valued at $5 billion in March 2021 when it announced its combination with , a SPAC backed by Reid Hoffman, cofounder of , and , founder of . , at the time, were wildly popular due to the advantages promised by blank-check companies. Merging with a SPAC was believed to be a quicker, and cheaper, route to public markets compared with a traditional IPO. Companies using SPACs could also provide future guidance, which is not allowed with traditional offerings.

The SPAC euphoria came to a brutal halt when a broad market downturn resulted in fewer IPOs. The Securities and Exchange Commission has also increased oversight of the sector, proposing a sweeping set of rules in March that would effectively even the playing field among IPOs and SPACs. Read more.

Source: Insurtech Hippo Holdings has ‘SPAC Remorse'