Investors are flooding the video game market with money at a record rate during a pandemic-inspired boom. Some, unfamiliar with the gaming world and eager to follow suit, may be tempted by impressive numbers and projected growth, rather than the core product in which they’re investing.
The SPACs with sports executives keep coming. The latest is Capitol Investment Corp. V, a blank-check firm from Washington, D.C. sports veterans seeking $300 million in an IPO it filed to conduct.
Skillz is going public this fall on the New York Stock Exchange through a special public acquisition company (SPAC). This has become a popular way for fast-moving companies to go public without all the hassle of a traditional IPO. SPACs are set up by managers who raise money in a blind shell company, and the investors don’t know what they’re putting their money into.