Investing in pre-IPO SPAC
I have an opportunity to invest in a pre-IPO SPAC at sponsor terms. The sponsors have strong backgrounds relevant to the type of targets they're looking for. I haven't invested in SPACs before, but while I understand how they work, I could use some guidance on how to think of payoffs and probabilities. My understanding is that the key risk is that they don't do a merger - is that right? Or are there other KEY risks I ought to be factoring in? Their focus is several verticals within tech, which is a competitive space where everybody is essentially looking.