YouSaid · the spoken record

Andrew Walker

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52

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2021-07-09

most recent

2021-07-09

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1

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podcast

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1. “Think there's two separate things there, right? The incentive structures for SPACs are, I don't think it's an exaggeration to state, they're absolutely awful. So if you're the founder of a SPAC, most SPACs come out with about 200 million. They raise $200 million in trust. So you and I, we'd get $200 million. We'd give it to a third party, let's call them Ben. And Ben would go take that $200 million, try to find a deal. And what Ben would put up is $5 million for a $200 million back. And if key manages to find a deal that is approved and goes through in exchange, she will get 20% of the company's equity. So we gave him $200 million. He finds a deal and it goes through. He gets 20%. That's effectively $40 million, assuming the shares trade around trust. That's a great trade for him. He just made an ADX without actually really creating any value. But for us, it's actually a disastrous trade because if Ben doesn't find a deal, he loses that $5 million. So Ben is actually incentivized to find any deal at any”

   2021-07-09 · We Study Billionaires · TIP359: The Rise and Fall of Archegos and Discovery w/ Andrew Walker · IDENTIFIED FROM THE TRANSCRIPT

2. “Hey, thanks for having me. I'm happy to be here. SPACS and Discovery are, you know, they take up an increasing proportion of my life. So it's good to get on Zoom and talk to someone about them.”

   2021-07-09 · We Study Billionaires · TIP359: The Rise and Fall of Archegos and Discovery w/ Andrew Walker · IDENTIFIED FROM THE TRANSCRIPT