Chamath Palihapitiya Is Launching a Brand-New SPAC. Is This 2021 All Over Again, or Is This Time Different?

Core Viewpoint - Chamath Palihapitiya, known as the "SPAC King," is launching a new SPAC named American Exceptionalism Acquisition Corp. A, aiming to raise $250 million, with a focus on companies that prefer not to use traditional IPO processes [2][3]. Group 1: SPAC Overview - The new SPAC will trade under the ticker symbol AEXA and is part of a trend where over 700 private companies have valuations exceeding $1 billion, while the number of public companies in the U.S. has decreased by 2,000 since the 1990s [2][3]. - The SPAC will target acquisitions in four sectors: energy production, artificial intelligence, decentralized finance, and defense [5][6]. Group 2: Structural Differences - Unlike previous SPACs, this new structure does not include warrants, which were common in the 2020-2021 SPAC boom [7]. - The founder's shares will only vest if the stock price increases by 50% post-deal closing, aligning the interests of the sponsor with those of investors [8]. Group 3: Historical Performance - Palihapitiya's previous SPACs had mixed results, with only one out of six providing positive returns for investors who held shares. The overall return on a $60,000 investment in these SPACs would be approximately $46,750 today [9][10]. - The successful SPAC, SoFi Technologies, was still a year away from obtaining a bank charter at the time of its SPAC deal, indicating that targets are often early-stage growth companies [12].