The longtime banking entrepreneur and fintech investor made a fortune helping companies go public through reverse mergers before the market cratered. Here’s why she hasn’t given up on the out-of-favor financing vehicle.uring the Covid19 years, investors flocked to special purpose acquisition companies: Shell companies that raise money through IPOs, then acquire a private company to take it public.
As a result of the changing environment, Cohen’s investment firm – which she runs with her son, financier Daniel Cohen – has pivoted its investment strategy towards venture capital investments and away from SPACs. The Cohens renamed their investment firm Cohen Circle late last year – it was formerly Fintech Masala – in part to reinvent their brand with investors and the public.in a recent Zoom interview from her home in New York City.
According to Cohen, there have been three previous SPAC booms, all of which were tied to specific sectors: The first wave in the 1990s, SPACs were focused on industrial firms; in the aftermath of the great recession, SPACs targeted real estate companies; and during the pandemic , SPACs went after technology firms. The fourth wave will be less “sector dependent” and more “company dependent,” she says.
Cohen has been investing and building companies for decades. She founded Philadelphia-based Jefferson Bank in 1974, sold it 25 years later, and then founded banking tech firm The Bancorp, which she ran as CEO until the end of 2014. Her planned retirement was short-lived. In February 2015, she and her son Daniel listed their first SPAC entity, Fintech Acquisition Corp., raising $100 million. It merged the following year with credit card payments firm CardConnect Corp.
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