Thayer’s new company will be the latest in what is called SPAC targeting travel. A special purpose vehicle or blank check company is a non-operating shell company that was formed with the aim of acquiring or merging with another company.
Thayer Ventures Acquisition Corporation is led by Co-CEOs Mark Farrell, former Mayor of San Francisco, and Christopher Hemmeter, co-founder and CEO of Thayer Ventures. At the proposed deal size, Thayer Ventures Acquisition would have a market value of $ 219 million, consulting firm Renaissance Capital said.
“We believe there is a ‘supply and demand imbalance’ that provides an economically efficient investor and acquirer with the opportunity to buy, integrate and grow an attractive business in our selected sectors [of travel and transportation] That would benefit from access to the public markets, “said the company’s founders in their S-1 filing with the SEC, which they filed in confidence at the end of August.
The new Valencia, California-based Special Purpose Acquisition Company (SPAC) follows other “blank check” companies targeting the travel sector. Thayer Ventures is already investing in the technology-based hotel brands Sonder and Life House as well as in around 40 other companies in the travel and transport sector.
Go Acquisition Corp. held a $ 500 million initial public offering in August to buy mergers in travel and related travel. Certares founder and Vice Chairman of Liberty Tripadvisor Greg O’Hara are behind this company.
Altitude Acquisition filed documents late last month to raise $ 300 million in an initial public offering for mergers, acquisitions, and investments in the travel industry. Its CEO is Gary Teplis who is the CEO of the business travel agency Teplis Travel.
Thayer Ventures’ move also follows the closure of a $ 80 million fund to invest in young people despite the coronavirus pandemic. Thayer Ventures is one of those rare companies that focuses primarily on travel, which is why the sector sees this as a leitmotif for the state of equity financing. The San Francisco-based company prioritizes early-stage business-to-business companies, but also considers other opportunities.
The new company listed a few criteria that would make some potential investments more attractive than others. The plan is to examine companies that focus on sectors that are facing long-term disruption and that have competitive advantage, high sales growth, and knowledgeable executives.
Thayer Ventures Acquisition Corporation is listed on Nasdaq under the symbol TVACU.
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Photo Credit: A sign on Wall Street in the Financial District of New York City. Thayer Ventures, a venture capital firm, plans to raise up to $ 175 million in an IPO for a company that invests in tour operators. Adobe