Webull Prepared to Go Public at $7.3 billion Valuation (SPAC deal) – Xiaomi and Alibaba as Early Investors

The News: Online brokerage Webull is planning to go public via a $7.3 billion merger with a special purpose acquisition company (SPAC), after previous initial public offering (IPO) attempts were unsuccessful, partly due to its past crypto offerings.

Details: The New York-based company, which launched its trading platform in the U.S. in 2018, has agreed to merge with SK Growth Opportunities Corp. The company plans to start trading on the Nasdaq in the second half of 2024, giving Webull an estimated enterprise value of roughly $7.3 billion.

Webull’s U.S. CEO, Anthony Denier, stated that the company’s previous attempts to IPO were hindered by its cryptocurrency trading offerings, a practice the SEC has frowned upon. To eliminate this regulatory uncertainty and clear the path for its public listing, Webull sold its crypto asset business in late 2023.

Why SPAC?: Denier explained that the SPAC route provides a more certain valuation upfront compared to a traditional IPO. The blank-check deal is expected to raise approximately $100 million for Webull, which it intends to use for international expansion and new product development.

Webull experienced significant growth during the pandemic, with registered users reaching 20 million worldwide. The company has targeted more active traders than competitors like Robinhood, offering tools for technical analysis.

It’s important to note that this impending public listing occurs as fintechs proceed cautiously due to increased regulatory scrutiny of companies with ties to China. Despite early backing from Chinese tech giants Xiaomi and Alibaba, Denier emphasized that Webull is not majority-owned by Chinese entities.

Inspirato By Numbers – Revenue, Members, Vacation Homes, Locations, Prices

Inspirato is a luxury vacation home rental startup that simply just lets you pay a subscription to access unlimited rentals for $2500/month or on-demand rates with a $600/month subscription.

Its 18,000 members can book 1,200 vacation homes in 395 locations.

My Thoughts:

Somehow Inspirato is going public at what looks like might be a $1 billion valuation. Based on the numbers there is potential the company has a $45 million revenue. We have to be in a bubble for anyone to consider this type of business thats growing at 30% year on a year – to be valued anywhere near $1 billion.

Lilium – Flying Electric Taxis – Another Crazy SPAC?

The flying taxis are coming!

Lilium is a German company who are developing electric air taxis – they are currently in talks to go public via a SPAC.

It seems like they are running out of great companies to SPAC and seems like people are focused on select around buzz words – like mobility and electric vehicles.

Another German company with very similar aims, Volocopter, opted to raise new capital on the private market, bringing in €200 million (about $238 million) for a Series D.