Exclusive: Betsy Cohen Talks SPACs, Buffett, Bitcoin On 'SPACs Attack'

Betsy Cohen, the founder of The Bancorp Inc TBBK,  appeared on Benzinga's YouTube show "PreMarket Prep" Monday for an exclusive interview. 

Cohen commented on the recent SPAC crackdown by the Securities and Exchange Commision, adding that the SEC is concerned with making sure companies going public via SPAC provide "well-grounded" forward-looking statements.

Cohen On Buffett's SPAC Comments: Co-host Chris Katje asked Cohen to share her thoughts on Warren Buffett's comments on SPACs over the weekend.

In regards to the two-year time frame, Cohen said that two years is a reasonable cycle. It shouldn't take a knowledgeable sponsor longer than two years to do the work, she said. 

As far as SPACs making it harder for Buffett to acquire companies, she said: "I'm not sure I buy into that."

SPAC sponsors provide education about all three routes — IPOs, direct listings and SPACs — to transition from private to public.

"I think we've done Buffett a service," she told Benzinga. 

Affiliated Companies: The key criteria for a potential SPAC deal include good management, operating systems and a well thought-out business plan with recurring income, Cohen said. 

  • FinTech Acquisition Corp III FTAC merged with Paya Holdings Inc PAYA. Paya has a very well thought-out business plan, she said. 
  • FinTech Acquisition Corp V FTCV is set to merge with eToro. The company has a lot of tailwinds, she said. It's a trading platform that is dedicated to educating investors, which she noted is becoming more and more important as interest in investing grows. 
  • FTAC Olympus Acquisition Corp FTOC signed a definitive agreement with Payoneer Inc. which provides a global payments and commerce-enabling platform. E-commerce shopping has exploded and the trend will continue moving forward, Cohen said. Payoneer "absolutely could" incorporate Bitcoin BTC/USD into its platform in the future, she told Benzinga.
  • Cohen didn't have a specific opinion on Bitcoin, but she noted that she is supportive of innovation, adding that the opportunity to innovate is very exciting.
  • Metromile Inc MILE offers an innovative look at insurance and risk calculation, Cohen said. There is an opportunity for Metromile to redefine automobile insurance, she added. Metromile has plenty of tailwinds going forward, she said, adding that the company is "riding the wave of newly accessible technology."

The SPAC market "still has a lot of legs," she said, adding that there are a number of companies out there that should take advantage of transitioning from private to public via the SPAC route.

Posted In: Betsy CohenBitcoinSPACsSPACs AttackWarren BuffettCryptocurrencySmall CapExclusivesMarketsInterview

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.