Um, where is the SEC when it comes to SPACs and conflicts of interest? – TechCrunch

Possible merits of the deal aside, the deal is also interesting because of Hoffman’s involvement. This isn’t the first time a SPAC sponsor has pursued an existing investment as a target. A representative for Palihapitiya declined to disclose to Bloomberg whether or not he sold the stake prior to the SPAC deal, but legally, it doesn’t matter anyway. Yes, there’s a strong argument that a SPAC sponsor who has been long involved with a target company knows better the value of that company than anyone else. But the target could also need to bailed out by SPAC sponsors who have a vested interest in the company and know its prospects may dim otherwise.