Name: Could this be the way for Silicon Valley to go public?
Uploaded: 2020-12-01
Duration: 2 min 29 s
Description: Paul Ryan shares his proposal for a new SPAC.

 PAUL RYAN: Yeah, so to be brief and blunt, I would not have affiliated myself with a traditional SPAC. Frankly, because I didn't like the structure. I spent a career in public policy trying to reform programs, making them better. That's what I feel like we're trying to do here with EMPC. So the traditional SPAC, you have a misalignment of interest to start with. You have short term view. All the sponsors really care about is getting the transaction and the bankers like Liz was saying, just get big thieves. And that means you have to be a weaker than normal company, or a tough story going to market. But there are benefits to the SPAC process. What we propose is let's fix these deficiencies. Let's have perfect alignment of interest from the get-go, lower dilution and a focus on long term sustainable value creation. So what we propose as opposed to the traditional SPAC is not a 25% sponsored take at the transaction, 5%. And then 20% for the next 12 years of the stock appreciation after a high watermark and a 10% hurdle rate. So only does the sponsor do well if over the long term, the company does well. And we bring to the company a team of people invested in and capable of helping grow the business. So we're bringing top notch executives who really know the space we're going to go into to help grow the company over the long term. And the benefit of all of that is lower dilution, which competes favorably with a regular way IPO. But you get speed to market. You have a larger size, you can use projections. And so those things-- you have value certainty for the seller. You have the ability to bring a big team to help. So I think those things taken together sort of take the best from both. The best from the regular way IPO, the best from a SPAC, combine it into a product. I think that as a result, you'll get a healthier company coming to market. And some companies have more nuanced stories that need longer telling. You have a three month road show instead of an eight day road show, for example, with the kind of fact that we're proposing. So I think what we're trying to do is get the best of both worlds, align everyone's interest from the get-go, focus on long term sustainable value creation. And to me, that's good change. That's good reform. And that's what we're trying to bring to the marketplace here with this product. [NO AUDIO] 

Could this be the way for Silicon Valley to go public?

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Paul Ryan shares his proposal for a new SPAC.