What exactly is a blank check company and why is Philip Krim, Casper’s CEO, involved? It’s a mystery. All of it.
In a blank check company, you may know who’s involved, but with no specific business plan, you never know what the members are setting their sights on.
And a new blank check company just emerged—Two Tailwind Acquisition Corp. Its mission is to “provide growth capital, strategic expertise and a preferred path to a public listing for disruptive high-growth technology and direct to consumer companies,” according to the company’s registration statement with the U.S. Securities and Exchange Commission.
Pretty vague, right?
What’s most interesting about this, for the mattress industry, is that Casper CEO Phillip Krim is serving as the chairman of the company. Krim has grown Casper revenue from $15 million in 2014 to $440 MIllion in 2019, and took the company public in February of 2020.
Now, this doesn’t mean Casper is one of the companies involved with Two Tailwind, as the registration statement says they have not selected any business combination to target or initiated any discussions of the sort.
But it also says they will not be limited to a particular industry, which leaves even more questions about the blank check company.
“We believe that we are well-positioned to identify attractive initial business combination opportunities across the technology and direct-to-consumer sectors,” the statement reads “Our goal is to acquire a target that we can help achieve significant organic growth and could serve as a platform for future add on acquisitions with the goal of becoming an integrated provider offering a broad range of products or services across the technology ecosystem.”
Also involved in the company are Matt Eby, founder and managing partner of Seawall Capital; Chris Hollod, founder and managing partner of Hollod Holdings; Wisdom Lu, founding partner of Stibel & Co. and Bryant Stibel; Tommy Stadlen, cofounder and general partner at Giant Ventures; Boris Revsin, managing director and head of private capital at Republic Capital; and Michael Kim, founder and managing partner of Cendana Capital.
What we do know about Two Tailwind is that they want businesses whose enterprise value is more than $750 million, and they want founder-led businesses that can largely address markets being disrupted by technology. They’re also looking for companies that have strong growth and an attractive margin profile, and they want to identify opportunities where the Two Tailwind team can add value.
We also know that they’ve made their first acquisition, a “cloud-native leader in risk analytics” called QOMPLX. More information on that here.
Your guess is as good as ours as to how this might affect Casper, the mattress industry, or even the home furnishings industry as a whole, but we’ll keep an eye on it and continue to provide updates.
