Pedestrians passing a banner with the Palantir Technologies sign during the initial public offering (IPO) of the company in front of the New York Stock Exchange (NYSE) on September 30, 2020.
Michael Nagle | Bloomberg | Getty Images
At this time last year, Palantir was preparing for its long-awaited stock market debut. Today, data analytics software developers are emerging as key investors in other technology companies preparing for the open market.
Palantir’s latest investment was announced Thursday when Babylon Health announced it would go public through a special purpose acquisition company (SPAC). A group of investors, including Palantir, has pledged to invest $ 230 million in line with Babylon’s deal.
Palantir is currently agreeing to at least six SPAC deals within three months. SPAC is a blank check company that raises funds, acquires private companies through reverse takeovers, and goes public with the help of additional investors. By participating in a private investment in PIPE, or public equity, Palantir is guaranteed ownership of a certain amount of shares once the transaction is completed and the shares of the operating company begin trading.
While many tech companies such as Google, Salesforce, and Intel have large venture groups that help startups at various stages, Palantir’s focus on SPACs is unique among strategic investors. This means that Palantir is betting on more mature companies that are already often worth billions of dollars.
SPAC has…
