Investments in Fintech sector in 2021-2022
Invest in SPAC Bridgetown
Bridgetown Holdings is an American SPAC that raised $600 million in October 2020. UBS Investment Bank and BTIG are the lead underwriters. This SPAC primarily targets "new economy" sectors in Southeast Asia — tech, fintech and media companies.
Bridgetown is backed by two investment firms: Thiel Capital and Pacific Century Group. The former is run by entrepreneur and investor Peter Thiel, co-founder of PayPal Inc. and Palantir Technologies Inc. who has invested in LinkedIn, Stripe, Brex, SpaceX, Spotify, Airbnb and other early-stage startups. Hong Kong-based Pacific Century Group is led by billionaire Richard Li, one of Asia’s most active venture capitalists in tech.
Southeast Asia is one of the world’s fastest-growing regions, with economic growth averaging 5.4% annually, and is estimated to become the world's fourth-largest economy by 2030 following the United States, China and the European Union.
Southeast Asia Southeast Asia is starting a new chapter in its economic development, especially when it comes to new sectors. In 2019, the internet economy in this region hit $100 billion. It is expected to triple its growth by 2025 driven by the increasing youth population, consumption, and the development of private and tech innovation sectors bolstered by positive economic and political changes in the region.
Southeast Asia offers great market opportunities in the financial sector. According to a report by the Asian Bank, the gap between the population’s needs and the volume of electronic payments and transfers is estimated at $180 billion.
Bridgetown Holdings may face competition from other SPACs, private foundations pursuing similar goals. The latter may have more financial leverage than Bridgetown.
There is no guarantee that the management team’s decision-making will make the company a profit. There is a chance that its stock could drop below $10 after the deal is announced.
The SPAC company may fail to complete the merger within the allotted timeframe (24 months from the date on which the funds were raised). In this case the company will cease operations and return the raised funds to shareholders.
Bridgetown Holdings is considering any business in any field, but with a focus on Southeast Asia-based companies engaged in tech, financial and media sectors, since the SPAC’s management has connections and experience in these areas and can apply it to benefit the company’s growth.
According to Bloomberg news dated April 9, 2021, Bridgetown Holdings is in advanced talks with Traveloka, an Indonesian unicorn company that provides airline ticketing and hotel booking services. As one of the first unicorns in Southeast Asia, the company has quickly expanded its reach across Southeast Asia and also covers Australia.
When a SPAC goes public, it discloses in what industry it will look for a company to acquire, its search strategy, the amount of money raised, and other details. We analyze these offers and select the best from them. You can choose a SPAC and apply for the investment. You can change or cancel it before the application deadline expires.
We post a SPAC idea 4 days before the starting date indicated on the investment’s page and we fulfill orders on the starting date at the weighted average price of the past 4 days. The share allotment for this type of investment is always 100% (though a margin of error within 5% is possible).
The lockup period (refers to the time frame in which you are not allowed to sell your shares) lasts 5 days. On average, it takes a SPAC 5 months to find a deal, so we don’t recommend closing your investment before this period is over. You can follow the price chart from the first day, though the price is usually not too volatile during the first month of trading.
An investment closes automatically in two cases. In one case, a SPAC finds a company to acquire, signs a deal and three months after the closing date becomes known. The other scenario — the delisting of a SPAC company. The closing price of an investment is set on the last trading day, following which the investment closes automatically, and an investor receives his profit barring the commissions. You can view the results of your previous investments in the archive at any time.
The lockup period lasts only 5 days. After its expiration you can submit an application and close your investment. To do this, click the corresponding button on the page “My portfolio” when it becomes active.
The closing process is similar to the start of investing. You submit your application, we process it within one business day, and your investment closes at the current price on the stock exchange. An early exit for SPAC investments is processed without commissions.
0.25%. This fee is charged as soon as your investment bid is confirmed.
0.25%. This fee is charged upon closure of any relevant investment.
10 per cent of the profit your derive. This fee is charged only if you show positive performance as of the moment any relevant investment is closed.
TO EARLY EXIT
An early exit for SPAC investments is processed without commissions.