SPAC Watch: An Interview With Latch's CEO, Plus 2 Debuts We're Watching

In this week's installment of Industry Focus: Financials, we have week two of our four-part series on SPACs. The show starts with Fool.com contributor Matt Frankel, CFP, interviewing Luke Schoenfelder, CEO of property technology company Latch, which recently announced plans to go public via TS Innovation Acquisition (TSIA). Then, Matt and host Jason Moser take a closer look at two other blank-check companies on their radar.

To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. To get started investing, check out our quick-start guide to investing in stocks. A full transcript follows the video.

This video was recorded on March 8, 2021.

Jason Moser: It's Monday, March 8. I'm your host, Jason Moser. This week, we're digging into Part 2 of our four-part SPAC series. This week we're kicking off the show with another great interview. Latch is an enterprise SaaS provider, focused on delivering a full building operating system designed to help owners, residents, and third parties like guests, couriers, and service providers seamlessly experience the modern building. This week, Matt Frankel got to chat with the co-founder and CEO of Latch, Luke Schoenfelder about the company, its goals, and its journey to the public markets.

Matt Frankel: Hey, Luke. Thank you for joining us today.

Luke Schoenfelder: Thanks for having me, Matt. Excited to chat.

Frankel: Excellent. For those who don't know, Luke is the CEO of Latch, a property technology company. But for those who aren't too familiar with Latch, can you briefly explain the short version of what your company does?

Schoenfelder: Absolutely, yes. Our thesis from the beginning has always been to make buildings better places to live, work, and visit. We do that through LatchOS, which is our software platform. Then, through devices that we make, and partner devices, and integrations with companies like UPS or package delivery, and all sorts of other amazing things that need to happen at a building.

Frankel: Excellent. LatchOS is the product, but you also actually produce the physical hardware, correct?

Schoenfelder: We do, yeah. My background, I previously worked at Apple. My other co-founder was [...] the design team at Apple. A lot of the team is from Apple, so it's a similar ethos around software that's differentiated by hardware as well. I think that's been our thesis, how can we build something that works better together for everybody at the building?

Frankel: It is 2021. How has it taken this long for technology to creep into real estate?

Schoenfelder: It's very interesting. We joke that rent is the world's oldest subscription product and it hasn't changed in a [laughs] few thousand years. It really hasn't. The experience is the same, and I think there are a few reasons. One, there's nobody in real estate, even with our largest partners, that's truly at full scale. Everybody is operating in a subscale way, where they are not able to build their own technology products. They needed other folks to come along and build products that they could use, and no one has been able to do that in a totally widespread way, focused on all the users. We see our challenges being the first product company to do that. It's exciting, but it's also difficult because it can be a fragmented market. That is why it's so important for us to work directly with so many important customers as wealth investors and supporters of the company.

Frankel: I read a statistic that your product is being installed on about one in 10 new apartment buildings in the U.S., if I'm quoting that correctly.

Schoenfelder: It's one in 10 apartments, which is actually a bigger number, so one in 10 apartment units. But yes, you read that correctly.

Frankel: What is the big incentive for builders to make that investment?

Schoenfelder: It's two things. Well, actually, it's one thing. Real estate owners, they build their projects to generate a financial return. The way they measure that return is that operating income, they get a multiple on that operating income. Latch allows them to increase their revenue and also reduce their expenses, which both have the effect of increasing their net operating income. If you think about a building -- and every building is different, a building in Manhattan, their operational costs with rekeying and revamping an apartment when somebody moves in and moves out, ridiculously high. Super expensive, because of labor rates and other things like that. If you look at a building in Kansas, you don't have the same labor rates, you don't have those same expenses, but the buildings are really spread out, and so sending maintenance staff on a 45-minute drive to change a light bulb. Super inefficient. You have these different LatchOS that are just, in many ways, like an operating system for computers, where people can use it to make presentations. They can use it to make models; they can use it to play games. It's really flexible to meet the needs of specific buildings and a specific context.

Frankel: In other words, even though they're paying subscription revenue to you, I read that your average contract is about six years.

Schoenfelder: Yeah.

Frankel: That's actually cheaper than the alternatives in a lot of cases.

Schoenfelder: It is. That's right. Every great product you get more value out of it than what you pay for it. That's how any great business, but also any subscription product works. We've seen landlords and developers be super excited about the value that we're offering them.

Frankel: We'll talk about some of your particular growth projections in a minute when we get to the whole SPAC portion of it.

Schoenfelder: Totally.

Frankel: But what is the market size here? I mean, can your product, first of all, be retrofitted onto existing buildings?

Schoenfelder: Yes. A lot of our customers are retrofit. We've installed with hundreds of developers, hundreds of retrofit projects across the United States. But the market size, zooming out, is 47 million rental units in the United States, which is pretty big; 90 million in Europe, which is an expansion market for us, and so the way that breaks down, you have multifamily, so everybody thinks about the big Manhattan skyscraper. But the reality is that a lot of big apartment buildings are in Dallas, are in Tulsa, Oklahoma, 200- to 300-unit buildings, and so those are the types of properties where you have large concentrations of users that we serve, but we also serve the single family rental markets, smaller building, but all in, we see that 47 million rental units in the United States as our day one market, and then the 90 million units in Europe are expanded TAM.

Frankel: I know a lot of our members are also real estate investors. I know I am. Just one of my properties, let's say, for example, it's a triplex downtown in the market I'm in.

Schoenfelder: Yeah.

Frankel: Would Latch's product be a fit for that or is it just for larger-scale developments?

Schoenfelder: Today, we have a 25 units minimum. But part of why we've done that is to really focus our efforts as a smaller company at an earlier stage where we needed to prioritize our resources. Because if you think about it, well, from our perspective, work that is required to help someone with a three-unit building and a 300-unit building, it's actually quite similar, the amount of work that we have to do. We have to explain the value proposition, we have to go through the contracting process, and for us, this made sense to focus on those larger owners. But with this transaction and all of our new resources, we see the opportunity to serve every rental space as something we're really excited about. Coming soon, Matt, so stay tuned.

Frankel: Either I will get to 25 units [laughs] --

Schoenfelder: Get them both. We will meet you where you are, and it's a great time to invest in real estate as well.

Frankel: It is. The market near me is particularly hot right now, but we'll see how that goes. Let's get to this back portion of the discussion.

Schoenfelder: Yeah.

Frankel: We recently learned, for those who don't know, you're going public through a company called TS Innovation Acquisitions Corp.

Schoenfelder: Yeah.

Frankel: They are Tishman Speyer's SPAC, I believe, the sponsor.

Schoenfelder: That's right.

Frankel: You're not just getting the SPAC proceeds; you're getting what's called a pipe that is part of pretty much every SPAC deal, and there are some pretty impressive investors on that. How did you attract all of them? [laughs]

Schoenfelder: One of our values as a company is just humble excellence, and so it's really focusing on doing the work. We found that we've just kept our heads down and we've just done the work. When we had this opportunity to align with Rob Speyer and the Tishman Speyer team, I had known Rob for years. He had been a customer. They were small early investors. There was just this really cool value alignment with what Tishman Speyer does in the world and the types of products that they build and the long-term thinking that they have. When we went out to raise our pipe, the clear value that we could create together, but also the clear alignment of corporate values and just philosophy, we've got people really excited.

So if you look at the folks that came in on the pipe, Fidelity, Wellington, BlackRock, Durable, Chamath, that's a really incredible set of folks and we have the fortune to get to learn from their perspective, but also have them supporting us in this next phase of our growth.

Frankel: Speaking of Chamath, he actually called you guys the best software-as-a-service company he's ever seen or invested in. That's a pretty bold statement. [laughs].

Schoenfelder: It's high praise, but if you look at our published numbers, we've never turned a customer, the average customer signs more than a six year contract, and 97% of our customers pay upfront for all six years of their software. It's pretty incredible working capital dynamics, and again, it's a completely reasonable and rational economic act because of the way the buildings are financed, and so it is very interesting.

I flash back to raising money early days in Silicon Valley; people didn't understand what we're doing. They didn't understand why we weren't selling to consumers. They didn't understand the real estate industry, and frankly, a lot of people thought that the rental market was niche. I'm sitting there being, like, there's 47 million rental units in the United States. There are 47 million households. I don't know how that is a niche. But it just didn't click because I think a lot of the folks in Silicon Valley, they drive their electric car, particularly if you're talking about some of them on Sand Hill Road, they drive their electric car to a $3 million, $4 million suburban house in Palo Alto and thinks that's how the rest of the world works, and it's not, it's really not. We practically built our products to be inclusive and think about the needs of everybody. We're really proud to work with affordable housing, and really look at the entire spectrum of folks that are living in buildings in urban dense environments.

Frankel: I saw that you evaluated about 10 SPAC deals, I think is what I read, before settling on Tishman Speyer.

Schoenfelder: Yeah.

Frankel: Why them in particular? I know you said they were an early investor of yours, so I'm sure that had something to do with it.

Schoenfelder: It didn't. We had our first SPAC outreach in 2019, which obviously is [...], now looking back, we're like, "What's SPAC?" I had that whole cycle of trying to understand what was going on in the fall of 2019. Frankly, we thought it was interesting. It wasn't the right moment right then, we had just raised $100 million-plus Series B, but we thought it was interesting to track.

Then fast-forward to the fall, and we had multiple of our early shareholders have their own SPACs. We had this position where we had a lot of inbound, and then we had some of our own shareholders that had their own SPACs. We really needed to look at it and think about it seriously. I think we thought about it, a few things: One, if we look at our long term vision, we've always known that we wanted to be a standalone, independent company. We have not seen anybody else who gets this space or thinks about the space the way that we do, and we believe that we can continue to drive innovation here for a very, very long time, and we're just getting started. So, finding a way to be independent and to be able to continue to build these products is really important for us.

Ultimately, we thought being a public company was going to be the past, and so if you look at our traditional IPO, you don't necessarily, and well, you don't get that extra strategic partner as part of a transaction. You go and you meet with the BlackRocks, the Fidelitys, the Wellingtons, as part of a roadshow, but to have the ability to go with a close and true strategic partner that opens up new markets and new opportunities through the combination, that was why Tishman Speyer seemed to be the best partner for us, and why we're excited about SPAC was we felt like 1+1=3, as opposed to just getting the typical public company shareholder base. We got this extra partnership as part of the next phase of growth.

Frankel: Another great point about being in a SPAC IPO is you can raise a lot more capital than you would make traditional IPOs, especially if you're in a more earlier stage growth company.

Schoenfelder: Yeah, totally.

Frankel: You're getting roughly half a billion dollars in the SPAC deal in capital, if I'm correct on that.

Schoenfelder: It's $300 million cash in trust and then $190 million in the pipe. So $490 million, but precision matters, you know?

Frankel: That's true. [laughs]

Schoenfelder: Yeah, yeah. [laughs]

Frankel: But that's a lot of money. The whole valuation, I think, it's less than $2 billion.

Schoenfelder: It is. On a fully diluted basis, it's about $1.56 billion, if I recall correctly.

Frankel: That's a lot of capital for a company of that size. What are you going to do with it?

Schoenfelder: I think an important context, we've publicly raised, I believe, $150 million, is what's been disclosed. So, we've had large amounts of capital that we've invested previously and we think we've invested it wisely, which is why folks are looking at this additional round of investments. But if you zoom out, I think a lot of people see us building products for apartments, and that's a big market and they're excited about it, like we are, which is great. But what we're really doing is we're productizing the apartment itself. I know that sounds maybe a little fluffy, but what software interface has existed for spaces before? Think about all of the things that happen in your space and the lack of software and, frankly, just efficiency that exists there. We have a roadmap that allows us to continue to deliver innovation for a very long period of time, and people are very excited about backing our team to go and continue to deliver the products for this space. That's what we use the cash for, primarily.

Frankel: I would love to see your vision for what an apartment building in 2040 is going to look like [laughs] because it sounds like you guys want to own that space in 20 years.

Schoenfelder: Yeah. I don't know. Are you an iPhone or an Android user? Which ecosystem are you in?

Frankel: I'm Android.

Schoenfelder: You're Android? OK. I'm not quite as familiar with the phone transition process when you switch phones, but in iOS land, there's now this blue cloud that comes up on the screen of your old phone and you just scan it with the camera on the new phone and that's how all the data moves over. You're just on your new phone. Why doesn't moving work that same way, where I'm just moving, all of the stuff about me stays the same? It's just this one thing, the address, that's changing. All of my preferences about the world are kind of similar. Why are we not able to move in that fluid way? I think those are the types of use cases that we're looking at and saying, we think you should be able to, again, subscribe to [...] and have your preferences go with you and have something that's really tailored to you.

Frankel: That is really interesting, and I want to get into some of your projections from your presentation. If you just look at the line of what you did last year, about $18 million in revenue, your company lost about $61 million, which is fine. We know growth costs money.

Schoenfelder: Sure.

Frankel: But you're projecting the revenue's going to roughly triple this year and will reach $877 million by 2025, I believe. That's some pretty big growth. How are you going to get there?

Schoenfelder: It is, yes. A few things that are unique to our model; if you look at our booked revenue, booked revenue is when a letter of intent has been signed for a specific project, that revenue we have signed contracts for. To map where our customers think about this, they're not waking up tomorrow and saying, I want to have a building next week. [laughs] It's a multiyear process. Because of that, we sign these contracts to supply our products and our services to those buildings in the future up to 24 months out, which is actually not very long. It's long in one way, but mostly, these projects are actually being planned five years out.

So two years out is what we look at as the bookings window. When you see our growth projected for next year, you're looking at GAAP revenue, which is probably reasonable. We have LOIs for a very large portion of that, which is what gives us that confidence. If you think about our bookings being here and then the deliveries being a lagging indicator, they always move together. Does that make sense? The growth, we have really good visibility on, because we have visibility on the bookings.

Frankel: That actually gives you a lot of insight into what your next years, and even the two years down the road, compared to what most companies can really predict.

Schoenfelder: It does. The bookings, to also be clear, that's not our sales pipeline. We have a sales pipeline, which gives most companies visibility, then we have a signed contract, which gives us really good visibility, and then we have deliveries, which is when we recognize the revenue on a GAAP basis. So you can totally look at it and say, well, the revenue was small last year, and that's reasonable, but the reason why we have such confidence in our go-forward projections is because of the contracts that we have.

Frankel: OK. That makes a lot of sense. You have about a 154% net dollar retention rate. I can explain that, but I'd like you to try to let our listeners know exactly what that statistic means. Because they hear it a lot of the tech show, not so much on ours, which is the financial edition.

Schoenfelder: Totally. Net dollar retention is basically how much purchasing your existing customers are doing. If you think about that, if they just bought one product, one time, it'd be at 100%. We already mentioned we have 100% customer retention; 154% actually represents that we've upsold new products and new services in new expanded locations with our existing customer base to the extent that, if you look at a snapshot of our existing customers, we have 154% net dollar retention, meaning that there was 54% growth on top of 100% retention, which is pretty exciting and fairly unusual.

Frankel: A lot of our best software-as-a-service companies that we follow, in the 120% to 130% range I'd say, are pretty normal. Do you think that's sustainable, second of all?

Schoenfelder: The way that we think about and the way we organize everything on the product side is around modules. If you look at LatchOS, we deliver new modules over time. So as we scale new modules to existing customers, but then also just release net new modules, we'll have a much bigger menu of products that solve problems for our customers. Is it always going to be 154%? Hard to predict the future. But what I would say is that we expect to continue to have very strong net dollar retention and also customer retention going forward.

Frankel: Would you say your biggest growth opportunity is adding new products or continuing to grow your customer base? What's the more immediate growth potential?

Schoenfelder: Can I pick two?

Frankel: [laughs] I love that answer.

Schoenfelder: Those are the two things; it's grow the number of spaces that have LatchOS and then grow the things that LatchOS does at those spaces. That's what I wake up, what I think about every day.

Frankel: Before we go, I just wanted to give you the last word. Is there anything you would want people to know about Latch and what you're up to? When is the SPAC deal going to be completed?

Schoenfelder: We're in the SEC review process right now. If you look historically, it's typically about three months from deal announcement to SEC approval and merger. I would say it's a fairly typical transaction in that way.

In terms of the last word, I would just say we're so excited to get to deliver new value for everybody in the ecosystem. If you're a real estate investor, owner, we want to make your life easier. If you live somewhere and you rent somewhere, we want to make your life better as well. If you have ideas about, hey, I wish this happens at my space, shoot us an email. Some of our absolute best product features and innovation, not some of, all of them come from conversations with customers, conversations with residents. I get so many cold emails, LinkedIn messages being like, hey, could you do this one thing? That gets me so excited.

I was actually speaking to a property manager who just reached out on LinkedIn the other day, and it's so cool we get to learn what they are thinking about, what are the ways that we continue to evolve our product suite. So help us help you. Let us know what your biggest pain points are so that we can keep evolving our products to meet your needs, that will be the [...] with.

Frankel: You heard it. Luke wants to hear from you.

Schoenfelder: I want to hear. [email protected]. Hit me up on LinkedIn. Hit me up on Twitter.

Frankel: There you go. After this deal is done, you are going to have some deep pockets and a pretty impressive list of partners, and I'm really curious to see what you do with them.

Schoenfelder: We're going to do our best to just keep making buildings better places to live, work, and visit. That's the goal.

Frankel: Excellent. Thank you so much for joining us today.

Schoenfelder: Thanks so much for having me, Matt. Thanks so much, Jason. See you all soon. Bye.

Frankel: Bye, Luke.

Moser: Now, joining me to talk even more about SPACs, is Mr. CFP, Matt Frankel. Matt, how's everything going?

Frankel: Oh, just great. That was a fun interview, and I'm looking forward to talking about two more real estate-focused SPACs, since we talked to Luke and made this the real estate day.

Moser: [laughs] Yeah that was a really great interview. I enjoyed listening to it. Thanks so much for lining that up. I mean, just a neat business from a number of different angles, and man, I mean, you got to this in the interview. It sounds like they really are growing.

Frankel: Yeah, I mean, it is pretty impressive growth so far. I liked what he said about the revenue looking really low this year -- $18 million in revenue from a company that's valued at over $1.5 billion. But he said that doesn't tell the story. There is that two-year visibility that was the most interesting part of that, in that people signed letters of intent for new buildings before they were even built and that's not really recognized as revenue for a year or two down the road.

Moser: Yeah, that's a good point. Well, we want to take the back half of the show today just to dig into a couple of new SPAC ideas. One that's out there, one that's getting ready to get out there, and let's just go ahead and start it off. Let's kick off the conversation with the first one here, Tishman Speyer Innovation II Corp. Ticker is TSIBU. Walk me through what has you so interested in Tishman Speyer Innovation II?

Frankel: Well, if you like Latch, this could be a SPAC for you, because it's kind of the sequel. This is the second SPAC from Tishman Speyer. This was originally supposed to be a $250 million raise; they ended up having to upsize the $300 million for demand. That was pretty impressive. Tishman Speyer, if you're not familiar, they are a New York-based real estate development fund. They build, they manage, they develop real estate. To name one of their big New York City properties, a little one, then I don't know if anyone's heard of, called Rockefeller Center.

Moser: [laughs] I've heard of it.

Frankel: Yeah, that's one on their list. They have some big properties in Paris, in Shanghai, developing a big new complex in San Francisco right now. They're a big deal on real estate, just to put it mildly. They have about $56 billion worth of properties under management, over 82 million square feet in some of the most expensive cities in the world. That's a pretty big portfolio. Their CEO, Rob Speyer, that's who Luke was talking about, he's known for a long time, is the CEO of this SPAC as well.

Like most SPACs, they're very vague on what they're targeting, but they are targeting what's called a proptech investment, which is what Latch is, which, shortly, is short for property technology. If you think they did a good job finding a company like Latch to take public, and think they're going to do it again, right now you can get the second version of their SPAC for just over the $10 net asset value. Right before we were talking, it's trading for $10.25 a unit, which includes our common share plus that one fifth of a warrant. You're actually getting the common share for a little bit less than $10, which is really nice.

If you think they're going to repeat their progress with Latch, there are a lot of proptech companies that could make good candidates. It's a way to get in cheaply on a bet on management. The ticker symbol for this one is TSIBU. If you remember the units for the first one, the one that's taking Latch public, were TSIAU, so that was SPAC A; this is SPAC B. But the official name is Tishman Speyer Innovation II Corporation.

Moser: Do you have any timeline? Do you have any idea? I mean, I know Latch, obviously, Luke was clear on the timeline there. Do you have an idea of a timeline for this particular launch, this second version?

Frankel: Well, it's worth mentioning this one just launched in February.

Moser: Oh, I mean, I guess not launched. Maybe that's the wrong word, the target that they might be looking for.

Frankel: Sure. The IPO happened in February. This one is actually only trading as units. SPACs don't split off into common shares and warrants trading separately for 52 days after the IPO. Don't ask me why it's 52 days. It just is. But the point being, to answer Jason's questions, since they just wanted in February, they have a two-year time horizon to find an acquisition target. Most SPACs don't take anything close to the full two years. Lately, it's been three, four, sometimes six months to find an acquisition target from these big-name SPACs like Tishman Speyer is. But it could take up to two years.

SPACs are great investments for people who are patient and really believe in certain managers. I guess this one you can get into just over that $10 IPO price. Still, it's not trading at a premium. I mean, the tech correction in the past couple of weeks has also hit the SPAC market pretty good, which is good if you're looking to get into some of these SPACs that don't have deals yet, because you're getting them for a lot closer to their net asset value than you would have a week or two ago. It could be a good time to think of some of these, even though they don't know what company you are buying yet, their managers have a good track record, so I'm going for it.

Moser: Yeah, I mean, that's a good point you make there. I mean, oftentimes, you may not necessarily know what company you're getting into, but you've made this point all along the way. These really are a bet on management. When you find a good management team, then you have a track record you can go with. Whether it's the first, second, or the fourth iteration, whatever launch it may be, at least you have something to go by, and I think that could be really lucrative for investors paying attention, no doubt about it.

This second one here, let's talk a little bit about the second SPAC because I think this is another interesting one for listeners here interested in the space. Gores Holdings VI, ticker here is GHVI. This is the SPAC that's going to be responsible for taking Matterport public. Talk a little bit about what Matterport is and what your thoughts on Gores Holdings VI are.

Frankel: Yes, this is, as the name implies, the sixth SPAC from an investment firm known as the Gores Group. They've successfully taken five companies public already, so this would be No. 6. They announced they were taking Matterport, which is another property technology, or proptech company. What Matterport does is they provide a platform to make really impressive 3D maps of the inside of buildings, virtual-tour technology, things like that. They are the company behind the software for that. They have over 250,000 customers in 150 countries around the world.

So this is not necessarily an early-stage company. They've been around for 10 years now. They have over 10 billion square feet in their library of space that they've mapped already. They're not new at this.

They use a software-as-a-service model also, meaning that they sell subscriptions, their recurring revenue model. They've been around for 10 years; 2020 just kind of catapulted them into the next level. Think of what happened when 2020 started. We all know that there was the COVID pandemic, and everyone was staying inside and before March 2020, Jason wouldn't be talking to me from his house. He'd be in the studio talking to me. Everyone stayed inside their house, and the real estate market just kind of went nuts. Not only are mortgages cheaper than they've ever been before, but inventory is scarce, and things like that, which sort of created this tremendous need for people to be able to see prospective homes to buy without actually going there. That's perfect for a company that can 3D-map the inside of a property for virtual tour purposes.

The revenue increased over 500% last year. Don't expect that every year; that was the COVID effect. Remember, they are a subscription model, so if they quintupled their subscriber base in 2020, that's a sustainable boost in revenue. Revenue in 2020 was up 87% year over year. Pretty impressive. The 500% was their subscriber base, not revenue. Currently less than 1% of real estate around the world has a 3D map made of the inside of it. Less than 1%. So still a pretty big growth market.

They're going public through the stack deal. It's valuing them a little bit more, about double what latches value. They are valued at about $2.9 billion. That includes $640 million of cash they're getting in the deal. They're getting a $295 million pipe, which is the private investor round, and they're also getting $345 million from the SPAC, the Gores Holding VI that you were talking about.

A couple of impressive statistics that I read: The lifetime value of their subscribers is now over almost 12 times what their cost of acquisition is. That's pretty good economics. So each subscriber they get is bringing in 12 times the amount of revenue throughout the lifetime than it's costing them to acquire. That's a pretty good economics that can really snowball over time, and like I said, the 500% growth in subscribers, just really impressive. Impressive growth; really sustainable. It's really making the use case for this, because having a 3D-map version of the building, it opens up your home tours to people who aren't near you, even after the pandemic.

Moser: There's no doubt about it, and I think that it's interesting that you mentioned this one, because to me, this immediately gets on my radar for the augmented reality beyond service that I run here at the Fool. I mean, this sounds to be right up my alley in that regard, so I'm going to be keeping this one. I'm going to be keeping this one very close, and digging more into it in the coming weeks and months ahead. I'm trying to think here now, with Gores Holdings VI, this to me indicates that this is their sixth go at it -- there are five other Gores Holding SPACs that have launched to this point?

Frankel: Well, there were five others before this that have taken companies public already. I think there's a Gores Holding VII and a Gores Holding VIII out on the market right now. So six have identified their targets, five have already gone public, and I think there's two pre-deal Gores Holding stacks that are still in the market. The 3D mapping, the other thing I wanted to mention and I'm glad I didn't forget this, it's not just 3D home tour technology. This has implications for design, for construction, for property management, really, every area of real estate could use a 3D imaging technology inside of the building.

Moser: Yeah, I think you're right.

Frankel: We're having a small addition put on the back of our house next year, and we're working with an architect and they're using a 3D mapping technology. That's one application of their product. It's a huge addressable market opportunity. It's a pretty rich valuation for the company that had about $86 million of revenue last year. So a pretty rich valuation, but big addressable market, lots of growth momentum, I guess, that the COVID pandemic might have just catapulted them to the next level.

Moser: Yeah, sounds like it. I mean, that's a really interesting idea there, one I'm going to certainly enjoy digging a little bit more into. I appreciate you bringing it to my attention, and our listeners' attention as well. I bet you've created some interest there.

Matt, listen, I think that's going to do it for us this week. I really appreciate you taking the time to jump in. I mean, the interview with Luke was terrific, giving us a couple of more names in the SPAC space to take a look at. I look forward to doing this again, Part 3, next week.

Frankel: For sure. I have some good companies in store. I'll give you a hint. I won't say which ones they are yet, but there are two that I get asked about all the time. So there are two very high-profile SPACs we're going to be digging into next week.

Moser: Well, I look forward to learning more about them, but until then, I think we're going to have to leave it here. So, thanks again, and remember, folks, you can always reach out to us on Twitter at @MFindustryfocus, or you can drop us an email at [email protected].

As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. Thanks as always to Tim Sparks for putting the show together for us. For Matt Frankel, I'm Jason Moser. Thanks for listening, and we'll see you next week.