The $900 Billion Cash Pile Inflating Startup Valuations

SPACs and venture capitalists are plowing money into startups at record rates, looking past worries about lofty valuations

Mike Ryan, Chairman of Alpha Partners Technology Merger Corp, is quoted in a WSJ story on Mon. Dec. 27 titled, “The $900 Billion Cash Pile Inflating Startup Valuations,” that explored how SPACs and venture capitalists are “plowing” money into startups at record rates, looking past worries about lofty valuations. The article explains the reasons behind the boom including why the SEC is starting to look into how to better regulate the sector. The story concludes with a quote from Mike.  

“The availability of SPAC capital and of private capital gives companies options, but ultimately, the problems are caused by bringing the wrong company public or the wrong valuation,” said Mike Ryan, CEO of Bullet Point Network, a financial analytics company. A former Wall Street equity investor, Mr. Ryan also is a venture partner at Alpha Partners and board chair of a SPAC that Alpha Partners launched this summer.” 

Read the full article on the WSJ here.