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A comment on With $600M 'Blank Check' IPO, VCs Experiment on Startup Listings. Parent comment

Re:With $600M 'Blank Check' IPO, VCs Experiment on Startup L... by probe on Friday September 15, 2017 @04:42PM (#15260605)
I'm not sure where you're getting the 20% number...?

The ownership stake is dependent on how the negotiations go and how much the company is looking to raise at what valuation/terms. Social Capital will argue a liquidity premium should be applied, and I'm sure the company will say what you're saying (they can IPO <1%). However, they could both stand to benefit, so I see a deal happening with this SPAC

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Re:With $600M 'Blank Check' IPO, VCs Experiment on Startup L... by danielahn on Friday September 15, 2017 @11:00PM (#15262598)
SPACs issue units to their founders that will convert into approximately 20% ownership upon the successful completion of a deal
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Re:With $600M 'Blank Check' IPO, VCs Experiment on Startup L... by probe on Saturday September 16, 2017 @09:45PM (#15267805)
No it's the founders of the SPAC (Chamath et. al) get 20% of the SPAC, which will then be diluted once they merge with the target startup.

I do think you do raise a fair question of what stake Chamath et. al should get for sourcing a deal. 20% is definitely high, and I think a typical SPAC is something like 5% sourcing stake for the owners.

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Re:With $600M 'Blank Check' IPO, VCs Experiment on Startup L... by danielahn on Tuesday September 19, 2017 @11:29AM (#15285492)
Sorry for late reply!

20% is standard SPAC comp.

Also yes, I apologize, you are right - they get 20% of the value of the SPAC, so if they buy 10% of a company, they are only getting 20% promote on that 10%.

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