Even if you have no interest in sneaker culture or the red-hot streetwear trend that is simultaneously dominating the fashion, apparel, footwear industries, it’s probably a good time to familiarize yourself with Hypebeast.
This, as the 16-year-old Hong Kong-based media company announced Monday (April 4) that it was moving forward with a back-door special-purpose acquisition company (SPAC) listing with Iron Spark on the Nasdaq that targets a Q3 launch date, a current implied valuation of $530 million and the creation of the ticker symbol HYPE.
“Hypebeast uncovers the latest emerging trends in culture and lifestyle (including fashion, art, sports, technology, and food) and creates an ecosystem for cultural discovery and connection,” the company release states, noting its 26 million followers from 80 different countries enable it to connect Generation Z and millennial audiences with a range of leading retail brands.
But perhaps most unusual of all within the growing universe of “blank check” SPAC listings, many of which are struggling since making their public debuts, Hypebeast is already listed in Hong Kong and actually makes money.
“Hypebeast’s unparalleled brand engagement and global customer loyalty drives a high margin, consistently profitable business,” the company said, noting its 34% annual revenue growth rate from 2015 to 2021 which is expected to generate at least $112 million in sales for the current fiscal year that ended last week.
Readers, Brands, Partners
There are a few other things that set this would-be SPAC apart from many of its peers in this category and that is its ability to grow its base of readers and the continued expansion of its 3 brands, which include “HYPEMEDIA, an umbrella of online editorial and social media platforms; HYPEMAKER, an in-house creative production agency; and HBX, an e-commerce platform and omnichannel shopping destination,” the company says.
Taken together, Hypebeast also has an unmatched ability to generate hype with the help of brand partnerships and envy-inducing celebrity investors including Tom Brady, Naomi Osaka, Kevin Durant, Tony Hawk and Airbnb Co-founder Joe Gebbia, to name a few.
“We’ve built a loyal and passionate community who trust our curation across diverse lifestyle categories spanning fashion, arts, design, luxury, sports, technology, and more,” Hypebeast Chairman and CEO Kevin Ma said, adding that the SPAC listing and partnership with Iron spark would propel the company to the next level.
The Next Level
To be sure, Hypebeast has been able to build a profitable niche within an important young demographic of consumers who will be trend shapers for decades to come.
That said, the company’s long-term growth plans appear to be set on bigger and better things as evidenced by its growing list of verticals and coverage areas.
As long as Hypebeast can stay on-brand and in-style, the company’s SPAC move will also provide simplified access to U.S. investors, markets, consumers and more.
“With access to new capital and talent, we will expand our universe of content, commerce, and experiences in a way that strengthens our business and community,” Ma said in the announcement.
While many of Hypebeast’s publicly traded predecessors who entered and listed in the U.S. via the SPAC route were, indeed, little more than hype and hope ventures aimed at giving trend-seeker investors a place to put cash in a hot market, the soon-to-be-listed version looks set to live-up to its name. If only because it already has a known and established business that’s profitable and growing.
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