David here.

Last week, genetic testing company 23andMe announced it will go public via a special purpose acquisition (SPAC) merger with VG Acquisition Corp.

The merger will value 23andMe at around $3.5 billion, and it’s expected to take place in the second quarter of the year.

This is incredible news for a number of reasons. With the flurry of headlines we’ve seen over the past couple of weeks, I wanted to make sure we had a chance to discuss it today.

First, this is exciting on a personal level. 23andMe is a portfolio company of 10X Capital, where I currently serve as co-head of venture capital. We’re a proud investor in the company, and we’re thrilled to see the groundbreaking work they’ve done in the genomics space.

And second, this merger is even more exciting when you look at from a wider lens. It points to one of the most explosive trends we’ve ever seen in the market… and it’s one that’s making investors across the board an absolute killing.

We’ve talked about SPACs here before. They’re blank-check companies with no commercial operations that are designed to go public with the purpose of acquiring a private company with their IPO funds.

Essentially, they allow private companies to skip the long process of going through a traditional IPO. SPACs are faster and cheaper, and over the last year, they’ve become one of the most popular vehicles for companies looking to list on the public markets.

Hundreds of billions of dollars are made every year in this space, and they’re extremely popular with hedge funds and big-name investors.

Until recently, these types of opportunities weren’t accessible to ordinary investors… but today, all it takes is as little as $10 to invest in one of these blank-check companies.

(In case you’re wondering, here are three deal opportunities that can launch you straight into the world of blank-check companies right now.)

By all measures, 2020 was a banner year for SPACs.

By the end of the year, there were 248 SPAC IPOs, averaging about $334 million in value.

For comparison, there were only 59 SPAC IPOs in 2019 and 46 the year before that.

But 2021 is already on track to be an absolute smash-hit year for the space. SPACInsider reports that there have already been 127 SPAC IPOs this year… and it’s only the beginning of February.

If that momentum keeps up through the rest of the year, we’re about to see a record number of companies go public via SPACs.

Aside from 23andMe, there are quite a few SPAC deals to look forward to as we move through the rest of the year.

For example, electric vehicle charging company Volta just announced they’ll be going public in a $2 billion SPAC deal yesterday. Israeli EV company REE Automotive will go public in a merger with my own SPAC, 10X Capital Venture Acquisition Corp.

In short, SPACs give institutional investors a shot at stable, long-term returns, and they give venture capitalists a shot at massive wins. They’re popping up all over the place and targeting some of the largest industries on the market.

Take the cannabis industry, for example. It’s the fastest-growing industry in the world… and it’s incredibly undervalued.

But right now, experts are eyeing 12 blank-check companies dedicated to acquiring private cannabis firms. Together, they have over $3 billion in cash on hand, and there’s one out there that could beat out all the rest.

If you want to learn how to play it today, just click here for the full report.

I’ll be back soon with another update.

Very best,

David Weisburd