"We designed it this way, almost entirely institutionally backed, because, as I have learned, these vehicles are not ideal for most retail investors. They are for investors who can underwrite the volatility, place it as part of a broader structured portfolio and have the capital to support the company over the long run."
"For anyone in the retail market who still chooses to disregard my advice to avoid SPACs, please carefully review our disclosures and make a fully informed decision."
"I want to temper retail investors' involvement with my SPACs,"
American Exceptionalism, a new SPAC from Chamath Palihapitiya, became public after raising $345 million to acquire startups in energy, AI, crypto/DeFi, or defense and convert them to publicly traded companies. Palihapitiya reserved just over 1% of the SPAC for retail trading while 98.7% was sold to selected institutional investors. He posted guidance warning retail investors against buying SPAC shares and explained the vehicle is better suited to investors who can underwrite volatility, include it in a broader structured portfolio, and provide long-term capital support. Palihapitiya led the SPAC boom after his earlier SPAC took Virgin Galactic public.
Read at TechCrunch
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