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In this issue:
Lunar technology company Intuitive Machines received far less cash from its merger with a special purpose acquisition company (SPAC) than it forecasted, but despite this rocky start the stock price saw major highs last week.
Although Intuitive Machines said the SPAC trust could furnish the company with as much as $301 million in dry powder, shareholders opted to redeem a staggering $279.8 million prior to the transaction closing. The redemptions could reflect a relative weariness amongst investors of SPACs, which saw a huge upswing in popularity in the past few years but have more recently fallen out of favor as post-SPAC companies struggle to stay afloat in the public market.
But perhaps those shareholders are regretting getting their money back. The company’s stock closed at $10.03 on its first day of trading Tuesday, and surged to $39.73, up 211%, on Thursday.
Intuitive Machines rendering lunar lander. Image Credits: Intuitive Machines
Intuitive Machines rendering lunar lander. Image Credits: Intuitive Machines
For TC+, I wrote about the uptick in defense tech investments over the past few years.
Just a few years ago, many investors thought that cutting a check for a defense-first startup was a proposition that simply didn’t make sense. The tides have clearly shifted, and PitchBook data supports this warming to defense tech. From January to October last year, VC-backed firms injected $7 billion into aerospace and defense companies, a massive growth that stands in sharp contrast to the relative sluggishness in other sectors.
There are many reasons for this uptick in interest in defense tech, but driving all of them is a new, realist vision that’s spread among some technologists and venture capitalists. It sees global antagonisms threatening the stability of Pax Americana; it sees the United States rotting from the inside out due to bloat and lethargy. As a result, the Silicon Valley mentality has returned to its defense roots, embracing the role that venture-funded startups can play in maintaining America’s military dominance and technological supremacy around the world.
“If you believe in democracy, democracy demands a sword,” a16z general partner David Ulevitch said in a recent interview with TechCrunch. And Silicon Valley will be where it is forged.
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Source @TechCrunch
