“Things that have never happened before are the most mispriced things in markets.” – John Burbank
Software Acquisition Group II (NASDAQ: SAII) is in the process of taking Otonomo public in a SPAC deal that will value the company around $1.4 billion. Founded in 2015, Israel-based Otonomo is a platform to manage and sell car data – a new and rapidly growing field. The company has negligible revenue, an unproven industry, great management, and savvy backers. It is my largest personal position.
(Full disclosure: I own SAII stock, SAIIW warrants, and SAIIU units. I have no plans to sell any of my positions within five days of this article.)
Many new cars are built with the ability to gather and transfer huge amounts of data. Otonomo currently collects data from over 40 million new cars on ~150 data attributes such as location, speed, acceleration, turning radius, camera video, and more. Otonomo has a chance to be the leading company in this new market.
My views are summarized in three parts: 1…