Is it? VCs don’t raise money from “mom and pop and Reddit” retail investors, but SPACs have enabled insiders to sell stock at $10 that often ends up being worth less than $1 or even bankrupt just a year or two later. These often included a social media pump like the SPACs promoted by “SPAC king” Chamath Palihapitiya.
However the companies that go public via SPAC are mostly VC-funded, so in that sense you’re right that they’re also profiting from the SPAC con by being able to dump their holdings in these companies that were not actually ready to go public.
However the companies that go public via SPAC are mostly VC-funded, so in that sense you’re right that they’re also profiting from the SPAC con by being able to dump their holdings in these companies that were not actually ready to go public.