CRETech hosted an Event “The First PropTech SPAC IPO: Learn How Porch.com is Going Public through a SPAC” where the key principals from PropTech Acquisition Corporation, Porch.com, and Moderne Ventures got together to discuss the proposed public listing of Porch’s innovative software platform for home services companies.
Guests: Thomas Hennessy Chairman, Co-CEO & President, PropTech Acquisition Corporation; Constance Freedman Founder and Managing Partner, Moderne Ventures; Matt Ehrlichman Founder and CEO, Porch. Moderated by: Ben Lerner of Lerner Associates.
Here’s what we learned:
The homeowner SaaS company is going public via a SPAC. What is a SPAC? A special purpose acquisition company is a shell company that raises money through an IPO in order to take a private company public through an acquisition. SPACs have increased in popularity in 2020 as private companies increasingly view them as a good alternative to traditional IPO or direct listings, and investors are eager to invest in newly public companies.
Porch is a unique vertical software platform for the home that provides industry-leading ERP and CRM software to 11,000 inspection, moving and various other home services companies, gaining access to a proprietary and recurring sales funnel which includes 65% of homebuyers in the US annually.
The company’s innovative business-to-business-to-consumer (B2B2C) pricing model provides a cost-free alternative for software users and consumers while creating an expansive revenue opportunity for Porch, leveraging established monetization channels including insurance, moving, TV/internet, security, home repair & improvement, and more.
Following the deal, Porch.com will have an enterprise value of approximately $523 million, which is 4.4x the company’s projected revenue for 2021 and the transaction should close by year-end.
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