The deal introduces an innovative SPAC structure that better aligns incentives for all stakeholders involved.
After a successful IPO, MEKA will start dialoguing with top technology companies to build a tailored partnership model.
MEKA brings back together the original founding team from
The goal of
- A performance based Sponsor Promote structure that only vests if the SPAC generates returns for investors, with no promote equity accrued to sponsors if the company does not trade above its IPO price.
- A warrantless SPAC transaction that avoids added dilution to target company shareholders.
- A minimum of
$50Malready committed to the PIPE through a forward purchase agreement with Mercado Libreand Kaszek.
- A longer than customary lock up, of 18 months, unless certain performance thresholds are met.
Additionally, the Pioneer structure offers partner companies unrivalled business opportunities on top of the improved deal terms, a consequence of the unique nature of its sponsors. These additional advantages may include one or more of the following:
- MELI and Kaszek portfolio companies best-practice toolkit and knowledge sharing initiatives to manage relationships with global investors and capital markets.
- Strong reputational endorsement and signaling during transition from private to public fundraising to help bridge interactions between Latin American entrepreneurs and global public company investors.
- A highly selective base of long-term investors in MEKA SPACs, that may convert into shareholders of the partner company. These investors are mostly long-standing relationships of both MELI and Kaszek, with a shared conviction of the underlying long term investment thesis behind Latin America’s tech opportunity.
- Extensive operational alpha as both
Mercado Libreand Kaszek’s portfolio companies operations reflect top standards of excellence.
- Geographic expansion assistance, leveraging Mercado Libre’s broad regional footprint to help companies grow in new markets and business verticals.
- Tangible opportunities for synergies within Mercado Libre’s ecosystem, including commercial, financial, operational and strategic agreements. These agreements can enhance the partner company’s growth prospects by allowing it access to Mercado Libre’s distribution to over one hundred million people who access its platforms annually.
While commenting on the innovative structure of MEKA,
The innovative pioneer structure of MEKA has also been instrumental in helping it to secure investments from a list of highly reputed firms including some of the largest global asset managers, sovereign wealth funds, endowments and tech-focused funds, who don’t typically invest in SPACs.
Although MEKA expects to advance quickly in conversations with potential partners and make progress on partnerships in the upcoming quarters, a two year time limit is granted to the company to finalize a business combination with its selected target.
The IPO was underwritten by
Kaszek is the largest Latin American early-stage venture capital firm whose core focus is to partner with extraordinary entrepreneurs at their Seed, Series A or Series B financing rounds and continuously support them over the years with more capital, and strategic and operational guidance in their building of long-lasting, high-impact technology companies.
The firm, founded in 2011, has raised more than
Forward Looking Statements
Any statements herein regarding MELI Kaszek Pioneer Corp that are not historical or current facts are forward-looking statements. Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. Forward-looking statements regarding MELI Kaszek Pioneer Corp involve known and unknown risks, uncertainties and other factors that may cause MELI Kaszek Pioneer Corp’s actual results, performance or achievements to be materially different from any future results, performances or achievements expressed or implied by the forward-looking statements. Certain of these risks and uncertainties are described in the “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements And Risk Factor Summary” sections of MELI Kaszek Pioneer Corp’s registration statement on Form S-1 and the related prospectus dated