Thousands of venture-capital-backed startups applied for U.S. government-assistance loans when the pandemic hit. Many of them then went on to raise hundreds of millions of dollars each by going public, the Wall Street Journal reported. More than 30 venture-funded tech startups with valuations of more than $150 million announced a deal with a special-purpose acquisition company, or SPAC, within about a year of receiving taxpayer-funded forgivable loans designed to help small businesses pay their employees through the pandemic. Another 15 companies, each valued at more than $200 million, had traditional initial public offerings within about a year of taking a loan, according to a Wall Street Journal analysis of data provided by research firm PitchBook Data Inc. As much as $4 billion in Paycheck Protection Program loans went to venture-backed startups, according to PitchBook. The fast track from the PPP to a lucrative public-market debut shows how after a brief time of uncertainty last spring, when startups braced for the economy to collapse, the tech industry quickly emerged as a beneficiary of the pandemic. Low interest rates drove investors into tech, the public markets welcomed tech IPOs and a record number of SPACs sought out companies to take public through mergers. (Subscription required.)
