HONG KONG, Sept. 07, 2021 (GLOBE NEWSWIRE) — Recently, TickerWin, the leading market research firm, has released a research report ” VIYI Algorithm, a Company with $47.17 Million in Annual Revenue, Will Merge with Venus, Sparking Heated Discussions “. Since 2021, the SPAC has continued to grow in popularity. Data show that so far this year, the number of U.S. stock ipos through SPAC has reached 413, exceeding the number of last year; It raised $121.7 billion, with an average of nearly $300 million.
The performance exceeded industry expectations. After all, the SPAC-IPO of 2020 has been amazing enough. That year, SPAC-IPOS reached 248, up 320% year on year; Accounting for 55% of all IPOS, surpassing traditional ipos for the first time; The total amount raised was $83 billion, accounting for 46.47% of the total IPO volume.
VIYI Algo has announced that it will go public through a merger with SPAC Venus Acquisition Corporation. VIYI algorithms is valued at $400 million. Venus will be renamed MicroAlgo Inc. after the deal closes. The merger will be completed in the third quarter of 2021. It is reported that VIYI Algorithm is one of the top five central processing algorithm services in China. By 2020, VIYI had captured 5 percent of the market for central processing algorithm services to the Internet advertising and online game acceleration industries, according to the CIC report.
Explain the advantages of SPAC from four angles
1. From the perspective of financial innovation, SPAC financing mode is an innovative financial tool, integrating the characteristics of direct listing, MERGER and acquisition, backdoor listing, private equity investment fund and other financing methods, and making certain optimization or simplification.
2. For the target enterprises seeking to be listed through SPAC, the certainty of financing and the convenience of listing can be guaranteed to a certain extent.
3. For SPAC promoters, huge returns can be obtained through investment leverage. In terms of equity structure, companies listed through SPAC need to exchange shares of a considerable size (usually 20% of the total share capital after acquisition) to SPAC. In other words, the early capital invested by the SPAC sponsors is converted into Class B common shares that account for a certain percentage of the listed company’s total equity. As a result, SPAC sponsors have the chance to earn higher returns for helping companies go public than the investment banks that underwrite the typical IPO.
4. For ordinary investors, on the one hand, investing in SPAC means the opportunity and right to invest in early-stage quality companies. In addition, SPAC provides a certain guarantee for its investment from the legal and professional aspects of the sponsors. On the other hand, THE SPAC financing model provides investors with new investment options.
For some US-listed companies, SPAC mergers are a cheaper and shorter route to listing. Some analysts say that the listing time can be reduced to less than half a year through this method, and can skip the road show, hearing, financial statement review and other complicated procedures.
SPAC is a company with no commercial operation. It is essentially a “cash shell company” set up for the sole purpose of raising funds through AN IPO and bringing private companies to market quickly through mergers and acquisitions, so that companies and investors can reap rich returns.
Such high returns are becoming an important driving force to attract investors to participate in SPAC, and the setting of the equity structure also naturally gives investors the investment leverage to obtain a higher proportion of equity at a lower cost. It is reported that the average return rate of the SPAC completed in 2020 is 103%.
According to the CIC Report, benefiting from the development of IoT, cloud computing technology, and the increasing government investment, China’s artificial intelligence market size is in the process of speedy expansion, and it is expected that the scale of core industries will reach RMB 400 billion by 2025, representing an increase of RMB 350 billion between 2020 to 2025. The development of the artificial intelligence market will drive the growth of the central processing algorithm intelligent chip optimization solution industry.
In the future, IoT will provide more data collection terminals, which dramatically enhances the data volume. Big data provides information sources for AI, cloud computing offers a physical carrier for AI, and 5G reduces the delay of data transmission and processing. 5G, IoT, cloud computing all put forward higher data processing, analysis, and other needs and requirements. The central processing algorithm intelligent chip solutions combined with hardware performance optimization, software algorithm optimization, and other vital technologies will make breakthrough progress in the future under the background of the increasingly mature emerging technologies such as 5G, IoT, cloud computing, and big data.
VIYI is dedicated to the development and application of bespoke central processing algorithms. VIYI provides comprehensive solutions to customers by integrating central processing algorithms with software or hardware, or both, thereby helping them to increase the number of customers, improve end-user satisfaction, achieve direct cost savings, reduce power consumption, and achieve technical goals. The range of VIYI’s services includes algorithm optimization, accelerating computing power without the need for hardware upgrades, lightweight data processing, and data intelligence services. VIYI’s ability to efficiently deliver software and hardware optimization to customers through bespoke central processing algorithms serves as a driving force for VIYI’s long-term development.
Currently, VIYI is focused on developing and delivering central processing algorithm solutions to customers engaged in internet advertisement and gaming, and intelligent chips. Moreover, VIYI’s customer base is rapidly growing due to a general demand for more efficient data processing in various industries driven by the growing internet population and prevalence of AI. According to the CIC Report, revenue of central processing algorithm services derived from internet advertisement and online gaming alone grew from RMB 2.2 billion in 2016 to RMB 6.9 billion in 2020, representing a CAGR of 32.7%. This market is expected to maintain a rapid growth trend, expanding at a CAGR of 15% during the period from 2020 to 2025.
The central processing algorithm service is a service based on a series of algorithms including analytical algorithms, recommendation algorithms and acceleration algorithms, which can empower downstream industries with higher demand for data analysis and computing power optimization, and apply to internet advertising, internet game applications, finance, retail, logistics and other industries. In view of huge downstream demands, the overall market of central processing algorithm services is huge. Major players in the central processing algorithm service industry include digital marketing service providers, online game service providers and algorithm solution service providers. It is believed that after the merger and listing with SPAC, VIYI algorithm will gradually become the world’s leading central processing algorithm service provider.
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Terry Chan, Head of Research Dept
TickerWin Market Research
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