May 20, 2021

WTF is a SPAC?

SPAC's are all the craze and Black celebrities are at the forefront. Why?

WTF is a SPAC? 

Shaquille O’Neal, Martin Luther King III, and Colin Kaepernick all have one thing in common. They’re all new entrants in Wall Street’s latest craze: SPACs. SPACs are Wall Street’s latest financial invention that could either go awfully wrong or end up as a mainstay of the economy for years. 

Don Butler, managing director of ThomVest Ventures, described the concept as “You can think of it like: an IPO is basically a company looking for money, while a SPAC is money looking for a company”. 

In the case of Kaepernick, his SPAC Mission Advancement looks set to raise $250 million to acquire a business at the intersection of social consciousness and culture. In the era of cheap capital, Black celebrities are trading on their fame like few stars of the past could even imagine. 

Black Owned Everything, and I mean everything 

In Hollywood circles, Zerina Akers has been well known as a tastemaker for a long time. From costume design for Beyonce to set design on the Lion King, her taste levels are unquestionable. 

But it wasn’t until she started the now infamous Instagram account, Black Owned Everything, that the general populace started paying attention. Less than a year after creating the account, she’s turned the page into an eCommerce market for Black luxury brands. 

It’s the early days for BOE, but it’s a step in the right direction for the Black business movement. A step away from the constant listicle promotions like “201 Black Businesses You Should Shop for Christmas” and other passing articles that barely move the needle. BOE is about making buying Black a trend, not simply a fashionable fad.  

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