Because going public via a SPAC is seen as a merger, startups doing so face fewer restrictions on promoting stock vs. normal IPOs, which have a “quiet period”
Eliot Brown / Wall Street Journal : Tweets: @eliotwb , @jmacinvesting , @eringriffith , and @sarthakgh Tweets: Eliot Brown / @eliotwb : On startups going public IPOs: CEOs barred from talking to the media out of fear that unsophisticated investors will get starry eyed. No projections. SPACs: CNBC, including obscure YouTube channels for traders, boasts of billions in projections https://www.wsj.com/... @jmacinvesting : All right I've made it now, lol. I finally get misquoted and get put in a major publication article! #SPACs https://www.google.com/... Erin Griffith / @eringriffith : one reason startups love SPACs? they can promote the heck out of their stock to retail investors on youtube channels that promise to be “not hard-hitting” https://www.wsj.com/... https://twitter.com/... Sar Haribhakti / @sarthakgh : SPAC is like a venture round where you convince the lead investor but you also go public Personality driven financing events https://www.wsj.com/...