FSDC - Why This Top Venture Capitalist Is Raising Money With a Biotech SPAC
A special purpose acquisition company (SPAC) is a publicly traded shell company that raises capital with the intent of acquiring a private business. SPACs have become an intriguing alternative for companies that want to go public because they allow that to happen much faster than with an initial public offering (IPO).
FS Development (NASDAQ: FSDC) is the latest SPAC to hit the public markets, having completed its IPO on Aug. 14. It's led by Dr. Jim Tananbaum, who has a proven track record as an entrepreneur and investor.
A SPAC is a bet on the management team's ability to find an attractive company to acquire and take public. Therefore, leadership is the most important factor to evaluate when considering a SPAC for investment.