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Getaround braves chilly public markets with SPAC combination

On Wednesday, Getaround Inc. announced that it was going public through a merger with a special purpose acquisition company (SPAC). This deal comes as the San Francisco-based startup looks to raise money to expand its car-sharing business.

Getaround was founded in 2009 and has since raised over $300 million in venture capital. The company allows people to rent out their personal vehicles to others using an app. It currently operates in over 300 cities in the U.S. and Canada.

Getaround’s SPAC deal is with Ace Acquisition Corp. II, a blank-check company led by investor Jamie P. Welch. The deal values Getaround at an implied $1.55 billion. Under the terms of the deal, Welch will invest $300 million in the combined company.

Getaround plans to use the money it raises to expand its business. The company says it will use the funds to “build out its technology platform, expandinto new markets, and grow its team.”

This is not the first time a SPAC has been used to take a company public. In 2019, Nikola Corporation used a SPAC to go public. And in 2020, electric vehicle maker Fisker Inc. announced plans to go public through a SPAC.

The use of SPACs has come under scrutiny in recent months. Some investors have raised concerns about the way SPACs are used to take companies public.

Getaround is braving the chilly public markets with its SPAC deal. Only time will tell if this strategy will pay off for the company.
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It’s been a chilly winter for the public markets, but that hasn’t stopped Getaround from braving the conditions with a SPAC combination.

The San Francisco-based startup, which operates a car-sharing service, announced Wednesday that it has raised $300 million in a business combination with IAC Acqusition Corp. (IAC), a special purpose acquisition vehicle led by media mogul Barry Diller.

The deal values Getaround at $1.55 billion and will give the company access to capital to fuel its growth. Getaround had raised $560 million from investors prior to the deal.

This is the second time Getaround has resorted to a SPAC combination to raise money. In 2019, the company raised $300 million in a business combination with PEAK6 Investments.

So what’s driving Getaround’s growth?

The company has benefited from the shift to electric vehicles, as its car-sharing service is well-suited to EVs. Getaround has also been expanding its program to allow people to share their own cars, which has been popular with people who want to offset the cost of ownership.

Getaround is not the only company braving the public markets this winter. Several other startups have announced plans to go public via a SPAC, including human resources software company Greenhouse and online mortgage lenderBetter.com.

The SPAC market has been red-hot this year, as investors seek to tap into the growth of the new economy. With Getaround’s latest deal, that trend shows no signs of slowing down.

Getaround, the car-sharing startup, is taking an unorthodox route to the public markets.

The company has filed to go public through a merger with a blank-check company, or special purpose acquisition company (SPAC), called MegaCorp. The deal is valued at $2.6 billion.

This is a novel way to go public, and it comes with some risks. For one, SPACs are often used by companies that are struggling to grow or are otherwise not ready for the public markets.

Getaround is not in any trouble, though. The company is profitable and growing rapidly. It has raised nearly $500 million from investors, including Toyota and Alphabet’s GV.

going public through a SPAC could help Getaround avoid the usual scrutiny that comes with an IPO. And it could be a way to get a higher valuation than it would get from traditional investors.

The market for IPOs has been cold lately, and many companies have been withdrawing their plans to go public. Getaround’s CEO, Sam Zaid, said in a statement that the company decided to go public through a SPAC because it offers “a unique opportunity to bring our mission and vision to the public markets without the traditional IPO process.”

Getaround’s business is simple: it allows people to rent cars from each other. The company has a network of more than 10,000 cars in 350 cities around the world.

Getaround is often compared to Airbnb, but there are some key differences. Airbnb allows people to rent rooms, apartments, and houses from each other. Getaround only allows people to rent cars.

Another difference is that Getaround owns the cars that are available for rent, while Airbnb does not own the properties that are available for rent.

Getaround’s merger with MegaCorp is expected to close in the first quarter of 2020.

Getaround, a car-sharing service, is the latest company to brave the chilly public markets with a special purpose acquisition company (SPAC) combination.

The company announced on Monday morning that it has agreed to go public through a merger with AceSpeed Acquisition, a SPAC sponsored by funds managed by Aegean Capital Partners. The deal values Getaround at an enterprise value of $2.6 billion.

Getaround was founded in 2009 and is headquartered in San Francisco. The company has raised a total of $445 million in venture capital funding, according to Crunchbase. Investors include Toyota, SoftBank’s Vision Fund, and Braemar Energy Ventures.

Getaround’s platform allows car owners to rent out their vehicles to drivers in their city. The company has a network of more than 10,000 cars in 300 cities across the United States.

Getaround is the latest in a string of companies that have gone public through a SPAC merger. Others include Virgin Galactic, DraftKings, and Nikola.

The SPAC market has been on fire this year, as investors have been pouring money into these blank-check companies in search of the next big thing. So far this year, SPACs have raised more than $50 billion, according to Renaissance Capital.

Getaround’s CEO Sam Zaid said in a statement that the SPAC merger will allow the company to accelerate its growth plans.

“This transaction allows us to hit the ground running as a public company with the support of Aegean’s experienced team and significant capital to invest in our platform and continue to grow our business,” Zaid said.

AceSpeed Acquisition is led by Aegean Capital Partners founder and managing partner Michael Brown.

“As a pioneer in the emerging car-sharing economy, Getaround is transforming the way people get around cities,” Brown said in a statement. “We believe the company is well positioned to capture a significant portion of the global market for car-sharing, which is expected to grow from $3.8 billion in 2020 to $11.8 billion by 2025.”

The deal is expected to close in the fourth quarter of 2020.

Getaround is a car-sharing service that has been operational in major U.S. markets since 2011. The company allows individuals to rent out their personal vehicles to Getaround customers in exchange for a portion of the rental fee. Getaround has raised over $300 million in venture funding from investors including SoftBank, Toyota, and General Motors.

On Tuesday, Getaround announced that it has agreed to go public through a merger with SPECIAL PURPOSE ACQUISITION COMPANY (SPAC), Midtown Acquisition Corp. (NASDAQ: MDAC). The deal values Getaround at an equity value of $2.6 billion.

The combination with MDAC will provide Getaround with $575 million in gross proceeds, which the company plans to use to continue to grow its car-sharing business, expand into new markets, and develop new technologies. Getaround CEO Sam Zaid said in a statement that the SPAC merger will allow the company to “meet the needs of the 100 million Americans who would prefer to use a car-sharing service.”

Getaround has been growing rapidly in recent years, but the company has yet to turn a profit. In 2019, Getaround generated $93 million in revenue, a 70% increase from the previous year. The company expects to generate over $200 million in revenue in 2020.

The car-sharing market is still in its early stages and is expected to grow significantly in the coming years. Getaround is one of the leading players in the space and its merger with MDAC will give the company the resources it needs to continue to build its business and expand into new markets.

The future of transportation is looking a lot like the past, as U.S. entrepreneurs are turning to special purpose acquisition companies (SPACs) to take their electric vehicle (EV) and autonomous tech companies public.

Getaround, a San Francisco-based EV and autonomous vehicle (AV) sharing company, is the latest to do so, announcing on Tuesday that it will go public through a merger with COTA, ablank-check firm founded by auto industry veteran Michael Moritz.

The deal, which is valued at $2.6 billion, will give Getaround a much-needed infusion of cash as it looks to expand its fleets of EVs and AVs and battle entrenched rivals like Zipcar and Turo. It also signals confidence in the future of the EV and AV industry, which has been hit hard by the coronavirus pandemic.

“The pandemic has been a catalyst for change in how we think about transportation, and we believe that the combination of Getaround and COTA will position us well to capitalize on the large opportunity in front of us,” said Sam Zaid, co-founder and CEO of Getaround, in a statement.

Getaround was founded in 2009, and though it has been profitable for the last two years, it has yet to achieve the scale needed to compete with the likes of Zipcar, which was acquired by Avis Budget Group in 2013 for $500 million.

The company has raised over $300 million from investors including SoftBank’s Vision Fund, Toyota, and General Motors. It has also partnered with major automakers like BMW, Mercedes-Benz, and Volkswagen, as well as ride-hailing companies like Lyft and Uber.

Getaround’s merger with COTA is the latest example of a transportation company going public via a SPAC. In October, Arrivo, an autonomous vehicle shuttle company, announced that it would go public through a merger with Switchback II, a SPAC founded by former Tesla executive Jim Adler.

And in September, autonomous trucking company TuSimple announced that it would go public through a merger with blank-check firm Spitfire Capital. TuSimple is backed by investors including navigation company TomTom, UPS, and Nvidia.

The transportation sector has been hit hard by the pandemic, as the sharp decline in travel has decimated demand for ride-hailing and other services. But the long-term outlook for the industry remains bullish, as the rise of EVs and AVs is expected to transform the way we get around.

Getaround’s merger with COTA is a bet on the future of transportation, and it’s a vote of confidence in the industry’s ability to weather the current storm.

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