With valuations on US startups skyrocketing, SPACs are starting to shop overseas
The price tag for startups is climbing thanks to the boom in SPACs, according to 451 Research. But now there's a glut of SPACs fighting for startups to buy, and some are looking abroad. Venture-backed companies are commanding higher prices when they go public via SPAC, according to 451 Research. The increased competition is good news for startups who command higher valuations when they're purchased by SPACs versus acquired by a tech company. So far this year, the median price-to-sales ratio for companies bought by SPACs has been 12.9, versus 4.1 for those bought by other companies, according to 451 Research.