Monday 1 November, 2021 - Weekly round-up

Sonder downgrades valuation expectations for proposed SPAC to $1.9bn 

Sonder has downgraded its valuation expectations from $2.2 billion to $1.925 billion ahead of its proposed SPAC merger, which is still expected to close before the end of the year. 

EDITOR'S COMMENT

• The record SPAC market boom has been covered in great detail this year, with more and more emerging startups seeking an alternative to a traditional IPO and a quicker route to the public markets. However, the frenzy seen in Q1 has somewhat subsided since then with the number of SPAC IPOs declining by 66 per cent in Q2. 

Sonder is one of a growing line of companies in the short-term rental sector queuing up to go public via this method. However, it is doing so at a time when SPACs are facing increased scrutiny by the US Securities and Exchanges Commission and law firms over the losses some investors are experiencing when a company goes public via a SPAC.

Despite these headwinds, Sonder remains confident it is well positioned for long-term growth. Even after lowering its SPAC valuation estimate to $1.9bn, Sonder continues to be backed heavily by its investors, receiving $110m in capital from affiliates of Gores Metropoulos II on top of a $200m PIPE that was already announced. Ultimately only time will tell how Sonder will fare from the deal, especially as its losses mount while its revenues grow.

• In what was a hectic week of in-person industry events, it was amazing to see our Urban Living Festival vision become a reality in London last week and for attendees from across a range of asset classes to come together to define the next era of hospitality and real estate. Stay tuned for plenty of unique video content from ULF in London and VITUR Summit in Malaga across our IHM channels over the coming weeks!

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