Reinvent Technology Partners, a new special-purpose acquisition company founded by famed investor and serial entrepreneur Reid Hoffman, Mark Pincus, founder of Zynga, and Michael Thompson, a veteran hedge fund manager, filed for a $ 600 million initial public offering on Monday.
The SPAC was founded by Hoffman, Pincus and Thompson, formerly BHR Capital, with the intention of joining forces with a technology company. Thompson becomes a director, CEO and CFO. Hoffman and Pincus are co-lead directors. The company plans to trade on the NYSE under the symbol RTP.U. Once Reinvent Technology Partners raise the $ 600 million, the capital will be turned into a blind trust until the management team decides which company to acquire.
SPACs are blank check companies that were formed for the purpose of merging or acquiring other companies. SPACs are an increasingly popular way for venture capital companies to go public in 2020 without having to go down the traditional IPO route. In the past few months, a number of venture-backed companies have partnered with SPAC companies in lieu of a traditional IPO process, including online used car marketplace startup Shift Technologies, lidar companies Luminar and Velodyne Lidar, and a handful of electric vehicles -Startups like Canoo, Fisker Inc., Lordstown Motor and Nikola Motor.
In January, Axios reported that, with Hoffman as an advisor, Pincus and Thompson had raised up to $ 700 million for a new mutual fund to focus on publicly traded tech companies in need of strategic restructuring.
Here is the entire letter from Hoffman and Pincus that was included on the filing:
We believe there is a need for a new, additional type of venture capital that companies can use to innovate at scale and drive feature growth long after they go public.
Throughout our careers as entrepreneurs, investors, and directors, we’ve explored why some tech companies persist as market leaders. Often times, people see these companies from the outside in
as perfect, uninterrupted growth stories that were almost predetermined. We recognize, however, that behind these mythical growth stories lie many highly competitive cycles of invention and reinvention. Invention is when a company builds a new product and grows in an adjacent market like Amazon, which is developing AWS. Reinvention is when a company needs to adapt its core products and services to continue growing in an existing market, as Netflix did from DVDs to streaming.
For many public tech companies – especially midsize companies – these cycles can prove difficult to navigate while maintaining investor alignment. We went through our own invention and reinvention cycles when we were public on Zynga and LinkedIn, and it wasn’t easy.
We’re excited to be a new breed of venture capital partner at the table for one of the many tech companies that will go public in the next few years and help maintain a philosophy of growth, be bold and face the pressure of quarterly results to deliver.
We hope our experiences, ideas, and insights can make a difference when we partner with a Founder and CEO to build a market-leading company that delivers products and services that matter to people’s lives.