The Dawn of the SPAC Age

Financial markets are contrarian to the delayed reality of the economy.

And whatever happens, in this digital age, savvy investors can take advantage of changes and arbitrage opportunities far quicker than ever before. And the savviest investors are going all in on the new phenomenon of the SPAC.

AwakeVC is a ComFac (Commerce Facilitator) Network, driving sales and profits across each Awake Network.

Effectively, Awake Networks are market networks, and the measure of value moves from GMV to more of a “GDP” or Network Domestic Product aka the total set of valuable transactions that occur across all layers of the network.

From SPAC to unSPAC

But before we discuss how a ComFac is an incredible match for a SPAC, it may be worth a primer on the SPAC, what it is, how it works, and so on. And rather than me explaining it, read the CBInsights article linked below, its an excellent primer on the whole SPAC thing.

Once you have a bunch of money in your SPAC, you have a certain amount of time to “de-spac”. Let’s now examine the digital network of networks applied to SPACs.

The unSPAC maneuver

So there are all these blank-check companies (aka SPACs) out there. They’re holding cash, burning holes in their bank accounts. They’re likely increasing the ire of their investors, who are all waiting, still waiting for a qualifying transactions. So here are all these money managers, having raised the big bucks, these SPACs have raised from $50M to $5B dollars each around the world, looking for profitable acquisitions.

Imagine if you were the investment managers, if you couldn’t spend the money within the typical 24 months, the funds go back. To annoyed investors who are unlikely to invest with you again.

So the question is: Where are all the profitable transactions that might return 10X to 100X within 2-3 years?

ComFac-powered unSPAC

We already know what a PayFac is, a Payment Facilitator facilitates payments, from one or more parties on the buy-side to one or more parties on the sell-side. These platforms, essentially payment multiplexers with programmatic logic, allows companies like Stripe to become $100B companies and more.

And we also know how a PayFac is different from a ComFac. As a quiz: which came first, the PayFac or the ComFac?

The fastest way to drive revenues through a network is to drive it via the Internet. The most efficient way to do that is via a direct channel, enabled by a fully-transparent commerce facilitator engine, that wires up the industry in which a business operates.

If one is looking for a lot of revenue quickly, one may simply use a ComFac to drive a Network Domestic Product to any desired volume of transactions. This simple approach of being able to roll up cashflows quickly and digitally, allows private equity and other capital management firms to boldly raise capital, knowing that they can easily find and filter qualifying transactions from large networks of network markets.

It drives much higher operational efficiency and dramatically increases Return on Assets, while being a multidimensional win-win for all sides of the market networks being rolled up. It drives double, triple, and even quadrupple bottom line results, while being incredible profitable.

At Awake, we endearingly call this tech-enabled PE strategy a ComFacSPAC, and are launching coverage of this space over at UnSPAC!

All things SPAC and PE at unSPAC.
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