Zillow (NASDAQ: ZG) (NASDAQ: Z) co-founder and former CEO Spencer Rascoff is launching his second special purpose acquisition company (SPAC). Rascoff's first SPAC, Supernova Partners Acquisition, raised $350 million in October last year. This new one will be called Supernova Partners Acquisition II and target $250 million.
While SPACs have been hot across the board, they have been especially popular in real estate tech, or proptech. CBRE, Simon Property Group (NYSE: SPG), and Fifth Wall are also currently leading their own SPACs.
A SPAC is a public "blank check" writing company. An investment in a SPAC is a bet on the management team and its ability to identify a private company to successfully take public through a merger.
SPACs usually have a "shot clock" (typically 12 to 24 months) in which to identify an acquisition target and agree to merger terms. If no such deal is reached, capital is returned to the SPAC's investors and the company is dissolved.
Here are some proptech companies that have recently gone public via a SPAC.
Opendoor (NASDAQ: OPEN) went public through a SPAC in September of last year. The company raised around $1 billion from the deal. Opendoor is an iBuyer firm that buys homes directly from homeowners with the intention of flipping them for a profit.
Porch (NASDAQ: PRCH) made its public debut at the end of 2020 through a SPAC. The company connects homeowners with home service providers, such as roofers, carpenters, etc. Porch also offers a customer relationship management tool to the service providers on the platform.
Smart access company Latch (NASDAQ: LTCH) did its SPAC deal early in 2021. Tishman Speyer's blank-check company, TS Innovation Acquisitions Corp., led this deal after raising $300 million in 2020.
Matterport, a company that takes real estate virtual, announced in early February that it will be taking the company public through a SPAC. This SPAC deal is supposed to close in the second quarter of 2021 and give Matterport a valuation of over $2 billion.
The Millionacres bottom line
Supernova Partners Acquisition II was pretty broad in announcing that its SPAC "intends to partner with an advantaged growth company that benefits from thematic shifts and tech-enabled trends." That doesn't exactly pinpoint their plans.
That being said, it looks like another proptech company will be going public through a SPAC soon based on the team's background and a heavy volume of real estate players involved in the SPAC trend.