General SPAC
March 8, 2021
7 minutes read

New SPAC Deal: Bill Gates-Backed Crowd-Safety Company Evolv

Amid a rush of SPAC merger deals as of late, the latest company to tap into the hot market for SPAC…

Amid a rush of SPAC merger deals as of late, the latest company to tap into the hot market for SPAC mergers is Evolv Technology, a company that makes security screening hardware adopted in crowded places like airports, malls, and museums and is backed by investors including Bill Gates.

Evolv has announced an agreement to merge with NewHold Investment Corp. (NASDAQ: NHIC) in a deal valuing Evolv at $1.7 billion. Evolv will receive roughly $470 million in gross cash proceeds from its merger, consisting of money held in trust by NewHold Investment Corp along with a committed PIPE round.

Under the terms of their merger, NewHold Investment Corp will hand over $172.5 million of cash it currently holds in trust to Evolv. Then, Evolv has secured commitments for an extra $300 million PIPE round from a mix of investors including investment firms like UBS O’Connor and Eldridge as well as sports stars and executives like Andre Agassi, Theo Epstein, and Tony Ressler, part-owner of pro Baseball team Atlanta Hawks.

Evolv is tied up with sports, as sports stadiums and arenas are major customers of its crowd safety screening hardware. It’s then no surprise that it’s drawn investment commitments from big names in the sports world.

Evolv boasts that its touchless screening machines have screened over 50 million people for safety, only second to the United States Transportation Security Administration (TSA). It boasts of “making the world a safer place to live, work, learn and play by helping to protect innocent people from mass shootings and terrorist attacks.”.

Evolv says all of its current shareholders, which include well-known names like Microsoft founder Bill Gates and venture capital firms DCVC and General Catalyst, will retain their equity holdings in the company through the closing of its merger. Its current shareholders will own 72% of the combined company after Evolv completes its merger with NewHold Investment Corp.

Following the merger’s completion, Evolv will retain its current management team led by CEO Peter George. It’ll though get two new board members from NewHold Investment Corp.

Evolv’s merger is expected to close in the second quarter of 2021.

Evolv is a high-growth startup founded in 2013. Over the years, it’s raised some $84 million in venture funding. Now, after eight years of existence, Evolv is on its way to a $1.7 billion exit on the public markets, marking a major win for the company’s investors.

Following the completion of its merger, Evolv will become publicly-traded on the Nasdaq stock exchange under the symbol “EVLV”.

Photo credit: DFID – UK Department for International Development, licensed under CC BY 2.0