The hype surrounding special purpose acquisition companies (SPACs), may be cooling off after a year in which they were the hottest new thing on Wall Street. But the companies—which are designed to merge with or acquire a promising startup that needs quick access to a lot of capital without the expense, time, and regulatory hassle of a traditional initial public offering—are well-suited to tackling the climate change crisis. SPACs are just beginning to heat up for climate tech.
Phyllis Newhouse learned that first-hand this month. After a two-decade career working on cybersecurity in the US military, Newhouse decided to take a stab leading a tech company in the private sector. She joined forces with venture capitalist Isabelle Freidheim to launch Athena Technology Acquisition Corp., an all-female-led SPAC that went public in March with a value of $250 million.
Newhouse wasn’t picky about the type of company Athena would target. She combed through two dozen startups in sectors like cybersecurity, fintech, and direct-to-consumer retail. “We just wanted to look for a company that had an innovative, game-changing solution in their industry,” she said. “But our criteria was very strict. We were looking for innovation, we were looking for readiness to go public, and a great management team.”
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