Science Inc. Makes $270 Million SPAC Debut

JP Mangalindan

JP Mangalindan is a senior contributing writer to dot.LA. His work has appeared in numerous publications over the last 18 years, including Bloomberg Businessweek, Fortune Magazine, GQ Magazine, Protocol, Entertainment Weekly, Mashable and Yahoo Finance. JP earned a bachelor's degree in journalism from Fordham University.

Science Inc. SPAC

Michael Jones and Peter Pham, the founders of Science Inc., officially joined the SPAC frenzy on Tuesday, with a special purpose acquisition company (SPAC) of their own valued at $270 million.

In an announcement, Jones and Pham said their SPAC, Science Strategic Acquisition Corp. Alpha, would debut on the NASDAQ today by selling 27 million units at $10 a share. The SPAC plans on merging with a company in the direct-to-consumer (DTC) services space and/or mobile and entertainment sectors.


Science Inc.'s SPAC is the latest in a surge of so-called blank check companies that debut on the stock market with the primary goal of merging with a company to take it public. Over the last 12 months or so, more than 320 SPACs have emerged. Last week, Fifth Wall filed to launch a SPAC, Fifth Wall Acquisition Corp. I. The electric vehicle charging station provider EVgo announced it would go public through a SPAC merger earlier this month; last November, the Santa Monica-based e-scooter company Bird Rides was also reportedly exploring a possible stock market debut by going the SPAC route.

For Jones and Pham, joining the SPAC game represents the latest move in a strategy that means further involving themselves in working with later-stage companies. Since launching Science Inc. in Santa Monica, the company has grown to include a startup incubator, as well as two venture capital funds with a combined size of $175 million. Portfolio companies include Dollar Shave Club, the esports platform PlayVS and Liquid Death, a canned mountain water startup.

dot.LA caught up with Jones hours after his SPAC went public to discuss why Science launched a SPAC and what he thinks of the current SPAC market.

Michael Jones, Science Inc.

Michael Jones is the co-founder of Science Inc.

What motivated Science Inc. to join the SPAC game and launch one of its own?

We've always looked at investing as being a lot of value on what we consider the kind of "barbell ends": the A) super early phase which we've made a big practice out of, and then B) there's a huge amount of value on the very late-stage side.

So we started looking at that strategy and we started looking at SPACs as the vehicle for that strategy, because obviously late-stage funds are a fairly crowded space. We looked at this SPAC vehicle, maybe five or six years ago, but we hadn't done anything with it.

You mentioned looking at SPACs five or six years ago. But five or six years ago was such a different time for SPACs. In 2015, there were just 20 SPACS that IPO'd, and in 2014, there were just 12 SPACs that IPO'd. Fast forward to 2020, and 248 SPACs went public, while another 75 IPO'd this January alone. So why did you think now was a good time to join the SPAC boom?

You're exactly right. Previously, these vehicles were often led by non-operational, non-strategic sponsors. You know, when Chamath [Palihapitiya] started working on the Virgin Galactic SPAC, we started seeing just the quality of the sponsors entering the SPAC universe being extremely strong. It suddenly became a really interesting and appealing sector to spend time in. It's also correlated with the fact that later-stage capital has become very available to startup founders. So these companies are obviously staying private way longer. They're raising money without bankers, from peers within the venture community.

I think when they look at doing typically what's a very complicated roadshow process to go public, it's frankly easier for them to stay private longer. But also when your sponsors are like us and are approaching companies and they already know us, it becomes a much more comfortable way to enter that process, which is much more efficient than the traditional IPO methodology.

Over the last year or so, we've seen more SPACs IPO than any other period in recent history. Most recently, in L.A., Fifth Wall launched a SPAC of its own and electric vehicle charging station provider EVgo merged with a SPAC, as well. From your perspective, what's driving the SPAC boom?

One thing that's driving the largest SPAC boom is you have very high quality managers and the other teams that want to get involved in stocks. I think that's one piece of it, which is that we're just at a point in our careers where a lot of us are excited to spend time in those later-stage public markets today. You have venture companies that have stayed private for so long. I think you have a pretty decent appetite from public investors, hedge funds and the like to participate in those fast-growing venture-oriented businesses. Because these companies have been able to raise these hyper late-stage rounds and avoid going public for so long, a lot of hedge funds and a lot investors are looking for their way into the startup world to get access to those fast growing companies. So, it provides a lot of interesting capital right now for us.

Do you see a strong tie between the SPAC boom over the last 12 months to the pandemic and the pandemic's effect on the economy? Or do you see the pandemic and larger economy not influencing the SPAC market?

I think the only tie-in to the last 12 months is that — and I'm sure you see it, too — meeting people every day is just a lot easier than it used to be. In order for us to do our SPAC, we ended up doing it exclusively through Zoom, and it was a really efficient process. Not that I wouldn't have had any hesitation to fly to New York and spend time with investors, of course, but this is just very efficient for a lot of people. So if you combine the fact that investors can meet a lot of prospective investments at a very rapid pace, with the stock market which happens to be at extremely high positions, as well as that appetite for later stage startups, you just end up with a really good combination for this to happen right now.

Do you see the SPAC boom easing or slowing down once most people in the U.S. are vaccinated?

I don't. I suspect it'll continue to grow. I think the quality of deals and the quality of managers are increasing. It'll be a meaningful way for a large licensed company to find their way into the public market. It will bring smart, strategic individuals into the public markets who will hopefully assist in creating greater growth once those companies are public.

The other thing that I think it will probably do, which will have a nice benefit for venture capitalists, is I think it will force large-scale incumbents to acquire companies more rapidly. if you look at a business like Him's, it's a really interesting business that was started as a men's specific pharmaceutical product company. It has now expanded to be a fairly impressive telehealth business. And you think to yourself: "What companies should have acquired Him's? What businesses should have bought that company before they became public?"

I think what this will teach is that incumbent companies that are looking to grow shouldn't wait on buying, you know, earlier mid-or-late to startups. They should be active and because SPACs are going to be a very viable alternative for those startups to grow and find capital, it probably will force incumbent companies to spend more — or probably drive the average M&A price up. So, it's just going to create a lot of liquidity around the venture sector broadly.

The Q&A has been edited for brevity and clarity.

Wonder Dynamics: Redefining the Animation Landscape
Wonder Animation

🔦 Spotlight

Happy Friday, LA!

Wonder Dynamics, a Los Angeles-based company founded by Tye Sheridan and Nikola Todorovic, has launched Wonder Animation, a beta feature that is poised to transform the landscape of video production. Acquired by Autodesk in May, Wonder Dynamics is leveraging this innovative tool, which harnesses artificial intelligence to turn standard video footage into captivating 3D animated scenes, making sophisticated animation techniques more accessible to filmmakers of all budgets.

Wonder Animation allows creators to shoot from multiple angles, with the AI reconstructing these shots into a dynamic 3D space. This functionality enables filmmakers to seamlessly blend live-action scenes with interactive virtual environments while preserving original camera movements. Users can customize various aspects, including animations, characters, lighting, and camera tracking data, and the tool integrates smoothly with popular software like Maya, Blender, and Unreal Engine.

What sets Wonder Animation apart is its emphasis on artistic control. Unlike many AI tools that impose rigid outcomes, this feature empowers creators to guide their projects, ensuring that their unique style remains front and center.

As the boundary between video and 3D animation blurs, Wonder Animation invites creators to experiment and innovate in exciting ways. This development marks a significant step forward in digital storytelling, democratizing access to high-quality visual effects and making sophisticated animation achievable for a broader range of filmmakers.

With the global animation market projected to reach approximately $400 billion in 2024 and grow to over $587 billion by 2030—reflecting a compound annual growth rate (CAGR) of about 5%—tools like Wonder Animation are more relevant than ever. This growth underscores the increasing demand for animated content and highlights the necessity of innovative solutions to meet filmmakers’ evolving needs. For those looking to elevate their storytelling, Wonder Animation may just be the key to unlocking new creative horizons. According to Statista, this upward trend in the animation market emphasizes the significant opportunities ahead.


🤝 Venture Deals

LA Companies

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LA Venture Funds
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  • Alexandria Venture Investments participated in a $10M Seed funding round for CrossBridge Bio, a company focused on developing advanced dual-payload antibody-drug conjugate (ADC) therapies, with the funds supporting preclinical development of its next-generation cancer treatments. - learn more
  • Clocktower Ventures participated in a $5.6M Series A funding round for Morada Uno, a startup in Mexico focused on making apartment rentals easier by providing a platform that connects tenants with landlords and simplifies processes like lease agreements and rent payments. - learn more
  • Skyview Capital participated in a $5M Series A funding round for Web3 chain game A-World, a tower defense battle game set in the metaverse on the BNB Chain, where players build hero towers to defeat waves of monsters. - learn more

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      • Drive Hospitality, a leading provider of personalized parking and hospitality services, including valet, concierge, bell services, parking management, and advanced technology integration, has been acquired by Propark Mobility. - learn more
      • Vebu Labs, located in El Segundo and specializing in custom automation solutions for the food industry—including the innovative 'Autocado' system that automates the peeling, coring, and scooping of avocados to enhance operational efficiency—will be acquired by Serve Robotics. - learn more

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            Big Wins: Dodgers Take the Title ⚾, ChatGPT Levels Up🚀

            🔦 Spotlight

            Happy Friday, LA! It’s been a week of big wins, on and off the field. 🎉

            ⚾️ First up, let’s talk Dodgers. With a thrilling 7-6 comeback victory over the Yankees in Game 5, the Dodgers clinched their eighth World Series title, their first since 2020. The city is buzzing, and fans are ready to celebrate! A parade kicks off this morning at 11 a.m., starting at City Hall and winding down to Flower Street, with a ticketed celebration at Dodger Stadium for those wanting to keep the festivities going.

            Image Source: Dodgers

            💻 Meanwhile, in the tech, OpenAI just rolled out a game-changing update for ChatGPT. Plus and Enterprise users can now access real-time internet search, powered by Microsoft Bing, bringing ChatGPT's responses fully up-to-date. This means users can now ask about the latest news, hotspots, or recent LA startup announcements, and ChatGPT will pull in fresh, relevant answers directly from the web. Previously limited to information up to 2021, ChatGPT’s new browsing capabilities make it a valuable digital assistant for anyone needing real-time insights in fast-paced industries like tech and entertainment.

            Image Source: ChatGPT

            🔍 The real-time search feature also includes “Browse with Bing,” allowing ChatGPT to source information from multiple sites for detailed answers to complex questions. Whether you’re exploring the latest venture capital trends in LA or curious about the best local spots, ChatGPT’s new browsing power helps you stay ahead with the latest info. This leap forward in AI functionality makes ChatGPT even more versatile and powerful for everyone, from business owners to everyday users.

            From the Dodgers’ World Series win to OpenAI’s latest ChatGPT update, there’s a lot to celebrate in LA this week. Here’s to champions, innovation, and a city that’s always pushing boundaries. 🌆✨


            🤝 Venture Deals

            LA Companies

            • Final Boss Sour, a Los Angeles-based gaming-themed snack company specializing in healthier sour snacks, has raised a $3M Seed funding round led by Science Inc. to expand its product offerings and operational capabilities. - learn more
            LA Venture Funds
            • Smash Capital led a $50M Series B round for Read AI, a productivity-focused AI company, bringing its total funding to $81M. The company offers a platform that enhances meeting efficiency through features like note-taking, summarization, and transcription. Additionally, Read AI introduced "Read AI for Gmail," a free Chrome extension that integrates information from various applications, reducing the need to switch between apps. The funds will be used to increase the company's headcount in engineering, data science, and business teams. - learn more
            • Distributed Global participated in a $25M funding round for Nillion, a company that provides decentralized privacy solutions designed to secure sensitive data using advanced technologies like secure multi-party computation. - learn more
            • Act One Ventures participated in a $5M Seed funding round for Latii, a construction materials supply chain startup, to enhance its platform that connects contractors with suppliers, aiming to streamline procurement processes and reduce costs in the construction industry. - learn more
            • SmartGateVC participated in a pre-seed funding round for Ritual Dental, a company revolutionizing dental care by integrating advanced technology and microbiome science to provide personalized, preventive treatments. - learn more

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                Billion-Dollar Milestones and Snapchat’s New Features

                🔦 Spotlight

                Happy Friday Los Angeles!

                This week’s spotlight showcases LA’s thriving tech scene, featuring Snapchat’s latest feature updates and two local startups Liquid Death and Altruist, making TechCrunch’s Unicorn List for 2024.

                Image Source: Snap

                Snapchat’s recent fall updates bring fresh features, including a new iPhone camera shortcut for instant snaps, Halloween-inspired AI-powered Lenses, and Bitmoji costumes inspired by Mean Girls and Yellowstone. Bitmoji stickers now reflect trending Gen-Z expressions like “slay” and heart symbols for added flair in chats. Plus, the “Footsteps” feature on Snap Map allows users to track their past adventures privately, adding a nostalgic touch.

                Image Source: Liquid Death

                ICYMI, two LA startups joined the Unicorn Club—achieving valuations over $1 billion. Liquid Death, based in Santa Monica, is a canned water company with edgy branding and a humorous sustainability focus. Known for viral marketing and brand partnerships, it redefines bottled water as a lifestyle brand and environmental statement. In March, Liquid Death closed $67 million in strategic financing, raising its total funding to over $267 million and valuing it at $1.4 billion.

                Image Source: Altruist

                Altruist, a Culver City-based fintech platform, offers financial advisors streamlined tools to better serve their clients. With a user-friendly investment and account management platform, Altruist has gained strong traction in the finance world. In May, it announced a $169 million Series E funding round, bringing its total funding to over $449 million and earning a valuation of $1.5 billion.

                Together, Liquid Death and Altruist exemplify LA’s capacity for innovation across diverse sectors, from lifestyle branding to fintech. Whether reshaping financial tools or redefining sustainable branding, these companies showcase LA’s unique entrepreneurial spirit. Go LA!

                Check out TechCrunch’s 2024 Unicorn List here. And don’t miss Snapchat’s latest features—perfect for adding some fun, connection and maybe a few selfies this weekend!


                🤝 Venture Deals

                LA Companies

                • Freeform, a company bringing AI to metal 3D printing, raised $14M in funding from NVIDIA’s NVentures and AE Ventures to further develop its AI-powered 3D printing technology for industrial-scale production. - learn more
                LA Venture Funds
                • Anthos Capital participated in a $70M Series D round for Carbon Robotics, which develops AI-powered robotics for precision agriculture, and the funding will be used to accelerate the growth of its autonomous weeding technology. - learn more
                • Anthos Capital participated in a $3.5M seed round for Plasma Network, aimed at expanding access to USDT stablecoins on the Bitcoin network, with the investment supporting the network’s growth and efforts to enhance stablecoin accessibility through the Lightning Network. - learn more

                LA Exits


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