2020 is shaping up to be the year of the special purpose acquisition company. This new and unconventional way for companies to go public has really caught on. Known as a "blank check" company, a SPAC raises capital from investors with the goal of merging with a private company to bring it to the public markets.
As of mid-September, 82 SPACs had gone public in 2020, raising $31 billion of investor capital in the process. There have been several more since then, and more are on the way. High-profile companies such as Virgin Galactic Holdings , DraftKings , and Nikola have all gone public via SPAC mergers, and investors are clamoring to get in on the next big SPAC deal.
Just recently, Boston Omaha Corporation (NASDAQ: BOMN) , the holding company that has often been compared to an early Berkshire Hathaway , filed registration paperwork for a SPAC of its own.
For further details see:
This "Baby Berkshire" Is Getting Into the SPAC Game -- Here's How to Invest