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InvestaX Launches World’s First Digital SPAC
March 15, 2021 News

InvestaX, pioneers and creators of next-generation technology-driven investment products, announces the launch of the world’s first Digital SPACs (special purpose acquisition companies), using smart contracts and blockchain technologies.

Digital SPACs are going to play an integral role in providing necessary capital to growing companies in new industries and give investors access to unique and leading technology companies creating the infrastructure for the digital era.

InvestaX CEO, Julian Kwan, said, “InvestaX and partners, offer Digital SPACs targeting cryptocurrency infrastructure, blockchain and DLT start-ups, games and e-sports, space, robotics, AI, and other future looking industries that are reshaping the 21st century.”

Digital SPACs will bring many similar elements of traditional SPACs, but offer a faster, lower cost, more flexible alternative, importantly bringing much needed capital to earlier stage start-ups in new industries, as well as greater transparency and better terms for investors.

Issuing a Digital SPAC using blockchain provides wider distribution channels for global investors who are prevented from, or prefer not to invest through traditional SPACs listed on USA stock exchanges. Digital SPACs will be distributed globally, not just domestically, opening up new markets and opportunities for sponsors and investors.

InvestaX will open source the smart contract code for the Digital SPAC, to bring greater openness, velocity, interoperability and global distribution. The average size of traditional SPACs in 2020 was approx. US$350M making it challenging to find acquisition targets as the valuation range required is between US$1-3B. The first wave of Digital SPACs will target US$10-50M, ensuring a much larger pool of potential acquisition targets and less competition for sponsors.