This Homeowner-Focused SaaS Company Is Going Public Via SPAC
A special purpose acquisition company (SPAC) is a shell company that raises money through an initial public offering (IPO) in order to take a private company public through an acquisition. SPACs have increased in popularity in 2020 as private companies increasingly view them as a good alternative to traditional initial public offerings, and investors are eager to invest in newly public companies.
PropTech Acquisition Corporation (NASDAQ: PTAC) just announced it will be taking the home automation company Porch.com public -- making it one of the most recent SPAC transactions. Should investors buy in?
Porch.com is a software platform for companies that provide services to homeowners. Service providers such as movers and home inspection companies can use Porch.com as a customer relationship management (CRM) platform and also as a business orchestration and execution software. In other words, the platform helps businesses manage relationships and projects so companies can grow their businesses and satisfy customer needs. The company also collects homeowner data which can be used to provide insights on insurance needs, TV/internet subscriptions, security, and potential home improvement needs. This data could be valuable in generating leads for those same service providers.
Source Fool.com
