Trendwatch: SPAC Founders To Own Smaller Percentages?

In a scary and disturbing turn of events for SPAC founders looking for an easy 10x return on their investment -- no matter how well/poorly they are able to get their acquisition to perform -- investors are asking that they accept a smaller piece of the pie: as little as 15%, down from the traditional 20%. Could it be? ...The humanity!

Some examples:

GHL Acquisition Corp -- 17.5% Founders' Ownership; IPO: Feb 14, 2008
BPW Acquisition Corp -- 15% Founders' Ownership; IPO: Feb 26, 2008

Considering that SPAC founder can still own 15% of a $100 million+ business for only $2-to-$3 million, this still seems like a criminally good deal for SPAC founders.

What are the implications here? Clearly, investors are looking to squeeze SPAC founders, but the reality is that the lower percentage of the business they own, the easier it's going to be to get a deal done when it comes down to the vote. Lower founder ownership = lower dilution to holders when it's all said and done. Ain't that a peach?

Now, rumors are circulating that venerable investment bank Goldman Sachs is preparing a SPAC where the founders will only own around 10%. Details are sketchy at this point, but we're sure we'll be hearing more from the 55 Broads soon.