Dealflow | November 24, 2020

Revolution Acceleration SPAC to bet on social and environmental policy shifts

Amy Cortese
ImpactAlpha Editor

Amy Cortese

ImpactAlpha, Nov. 24 – Blank check company Revolution Acceleration Acquisition Corp., founded by ex- Democratic presidential candidate John Delaney and Revolution’s Steve Case, plans to raise $250 million to target companies that can benefit from “the convergence of innovation, government policy and regulation,” according to its filing.

The politically savvy founders – Delaney is also a former Maryland Congressman – are keying in on an expected acceleration of environmental and social shifts under a Joseph Biden administration.

“We believe that the impact of government policies on our economic and environmental systems will continue to grow and that government spending, regulation, taxation and public-private partnerships will critically affect the behavior and growth prospects of businesses and the overall ability of investors to generate returns,” reads the filing.

It also notes that innovation, a shift to clean energy and the global pandemic “will accelerate the adoption of the digital economy, alter individual and business behavior, create new ways of providing healthcare, energy and government services and incentivize the building of domestic supply chains and industries.”

SPAC wave

Special purpose acquisition companies, or SPACs, continue to raise capital, even as concerns mount over high fees and hidden provisions.

U.K. electric van maker Arrival will go public via a merger with CIIG Merger Corp., a special purpose vehicle company of U.S. businessman Peter Cuneo… National Order Acquisition Corp., a sustainability-focused SPAC formed earlier this year, raised $230 million to invest in plant-based and alternative protein technology companies… Lighting EMotors, which is electrifying commercial vehicle fleets, is reportedly planning to go public via GigCapital3 Inc… “Healthy living” SPAC Better World Acquisition Corp. raised $126 million, which was above the $110 million it was targeting.