Do SPACs Make Sense for Startups?

Matt Crisp decided in May to take Benson Hill public using an unconventional tool—a merger with a special purpose acquisition company (SPAC) that will yield $625 million in capital and value the crop genomics startup at nearly $1.4 billion. It was the right structure at the right time for Benson Hill.

SPACs are shell companies that go public with no assets but then look to merge with a private business, resulting in a new, publicly traded entity. Typically, they’re created by a team of institutio…