Gerstner explains SPAC costs are borne by SPAC shareholders through share dilution, not by the company going public.
“All the costs are borne by the shareholders of the SPAC who gave us part of their shares when we set up the SPAC as a finder's fee for helping them invest in a world class company.”
Gerstner emphasizes Altimeter's SPAC charges companies zero fees while delivering outcomes identical to traditional bank IPOs.
“while the day of the IPO and the day after the IPO are nearly identical as if a bank took you public, we don't charge your company a fee. None. Zero.”
Gerstner emphasizes Altimeter charges zero fees to companies going public via SPAC.
“And while the day of the IPO and the day after the IPO are nearly identical as if a bank took you public, we don't charge your company a fee. None. Zero.”
Gerstner argues traditional IPO bank fees of 6-7% plus historical-only financials leave investors unable to evaluate high-growth companies.
“And on top of that, of course, you can only give historical financials, which leaves most investors in the dark about a high growth company's future prospects.”
Gerstner says Altimeter's SPAC model lets companies set their own price and charges zero fees to the company.
“You set the price, you tell the story with forward looking forecasts. We serve up a world class group of mutual funds and hedge funds as your shareholders.”
Gerstner says Altimeter's SPAC model lets founders set their own price and select their shareholders.
“You set the price, you tell the story with forward looking forecasts. We serve up a world class group of mutual funds and hedge funds as your shareholders. You ring the bell, it's your IPO.”
Gerstner criticizes traditional IPOs as year-long processes where companies don't know pricing or shareholders until the end.
“It's a year long process where you don't know the price for your shares or even who your shareholders are going to be until the end of the line.”
Gerstner argues Altimeter's SPAC approach takes companies public faster by acting as owners rather than agents.
“We don't act like agents, we act like owners. We're totally aligned with you. So I mean, we can get you public in a fraction of the time,”
Gerstner describes SPAC fee structure where shareholders pay via dilution, similar to VC fund economics.
“I mean, it's very similar to our VC funds where we get paid for helping our investors invest in companies like Snowflake.”