When the pandemic hit, thousands of venture capital-backed startups applied for loans from the US government. Many of them then raised hundreds of millions of dollars each by going public.
More than 30 venture-backed tech startups worth over $ 150 million announced a deal with a specialized acquisition company, or SPAC, within about a year thereafter. obtaining bad loans financed by taxpayers designed to help small businesses pay their employees during a pandemic.
According to Wall Street Journal data analysis by research firm PitchBook Data Inc., 15 more companies, each worth more than $ 200 million, conducted traditional IPOs within about a year after receiving the loan.
According to PitchBook, a whopping $ 4 billion in loans under the Payroll Protection Program went to venture-backed startups.
The rapid transition from PPPs to a lucrative public-market debut shows how, after a brief period of uncertainty last spring as startups braced for an economic collapse, the tech industry quickly became a beneficiary of the pandemic.