Smart lock maker Latch says it will go public by merging with a SPAC at a $1.56B valuation, expecting to raise ~$450M in cash
Deal between startup and SPAC sponsored by property firm values Latch at $1.56 billion — Latch Inc., a maker of smart locks and building-management software …
Context & Ripple Effects
Latch's road to this deal started with its $70M Series B led by Brookfield Ventures in 2018, which positioned the keyless-entry maker inside apartment buildings rather than single-family homes. The SPAC merger now converts that private position into a listed company at $1.56B with roughly $450M of new cash.
The move lands mid-wave: SmartRent took the same SPAC route months later at a $2.2B valuation, making Latch the first of the two building-automation rivals to test public markets. The arc didn't end cleanly — by 2023 Ring founder Jamie Siminoff had sold his startup to Latch and taken over as CEO.
First-order effects
- Latch gains ~$450M in cash and a public currency, letting early backers including Brookfield Ventures mark liquidity on a stake built through the 2018 Series B.
- The deal makes Latch a publicly traded competitor to Level Home's $249 retrofit lock and to SmartRent's building-owner automation business before either has faced public-market scrutiny.
Second-order effects
- SmartRent's parallel SPAC listing at $2.2B turns the two building-automation vendors into directly comparable public stocks, forcing both to defend their valuations against each other's metrics.
- A capitalized Latch can accelerate the UPS in-building delivery pilot already running in San Francisco and New York City toward its planned 10-city expansion, pressuring Amazon Key-style delivery access rivals.
Third-order effects
- If the pattern holds, proptech hardware firms bypass traditional IPOs for SPAC mergers sponsored by strategic property players — trading dilution for speed and an anchor customer relationship.
- Public-market discipline eventually reshapes these companies' leadership: Latch's later turn to Jamie Siminoff as CEO suggests SPAC-era listings set up founder transitions when growth targets meet hardware economics.
The trend: Building-automation startups are using strategically sponsored SPACs rather than conventional IPOs to reach public markets, with rival listings arriving within months of each other.