UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-K

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______________ to _______________

Commission File Number 001-41012

Finnovate Acquisition Corp

(Exact name of registrant as specified in its charter)

Cayman Islands

001-41012

N/A 00-0000000

(State or other jurisdiction

of incorporation)

(Commission

File Number)

(IRS Employer
Identification No.)

The White House, 20 Genesis Close,

George Town, Grand Cayman KY1 1208,

Cayman Islands

(Address of principal executive offices, including zip code)

+1 (347)743-4664

Registrant’s telephone number, including area code

Not Applicable

(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered

Class A ordinary shares, par value $0.0001 per share	FNVT	The Nasdaq Stock Market LLC

Redeemable warrants, each warrant exercisable for one Class A ordinary share at an exercise price of $11.50	FNVTW	The Nasdaq Stock Market LLC

Units, each consisting of one Class A ordinary share and three-quarters of a redeemable warrant	FNVTU	The Nasdaq Stock Market LLC

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ☐ No ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report.

Yes ☐ No ☒

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
Emerging growth company	☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒ No ☐

As of June 30, 2021 (the last business day of the registrant’s second fiscal quarter), the registrant did not exist and, therefore, cannot calculate the aggregate market value of its voting and non-voting common equity held by non-affiliates as of such date. The registrant’s units began trading on the Nasdaq Global Market on November 4, 2020. The registrant’s ordinary shares and warrants began separately trading on December 8, 2021.

As of April 12, 2022, 17,400,000. Class A ordinary shares, par value $0.0001 per share, and 4,312,500 Class B ordinary shares, par value $0.0001 per share, were issued and outstanding.

Documents Incorporated by Reference: None.

FINNOVATE ACQUISITION CORP.

ANNUAL REPORT ON FORM 10-K

TABLE OF CONTENTS

		Page
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS		4
PART I		5
Item 1. Business		5
Item 1A. Risk Factors		24
Item 1B. Unresolved Staff Comments		61
Item 2. Property		61
Item 3. Legal Proceedings		61
Item 4. Mine Safety Disclosures		61
PART II		61
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		61
Item 6. [Reserved]		63
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations		63
Item 7A. Quantitative and Qualitative Disclosures about Market Risk		68
Item 8. Financial Statements and Supplementary Data		68
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		68
Item 9A. Controls and Procedures		69
Item 9B. Other Information		69
Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections		69
PART III		70
Item 10. Directors, Executive Officers and Corporate Governance		70
Item 11. Executive Compensation		79
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		80
Item 13. Certain Relationships and Related Transactions, and Director Independence		84
Item 14. Principal Accounting Fees and Services		88
PART IV		89
Item 15. Exhibits, Financial Statement Schedules		89
Item 16. Form 10-K Summary		90
INDEX TO FINANCIAL STATEMENTS		91

CERTAIN TERMS

Unless otherwise stated in this Annual Report on Form 10-K (this “Annual Report”), references to:

	●	“we,” “us,” “our,” “company” or “our company” are to Finnovate Acquisition Corp., a Cayman Islands exempted company;

	●	“amended and restated memorandum and articles of association” are to our Amended and Restated Memorandum and Articles of Association ;

	●	“Class A ordinary shares” are to our Class A ordinary shares, par value $0.0001 per share;

	●	“Class B ordinary shares” are to our Class B ordinary shares, par value $0.0001 per share;

	●	“Companies Act” are to the Companies Act (As Revised) of the Cayman Islands as the same may be amended from time to time;

	●	“directors” are to our current directors and director nominees;

	●	“EarlyBirdCapital” are to EarlyBirdCapital, Inc., the representative of the underwriters in our initial public offering;

	●	“EBC founder shares” are to the 150,000 Class A ordinary shares that we have issued to EarlyBirdCapital and its designees in a private placement prior to our initial public offering;

	●	“equity-linked securities” are to any securities of our company that are convertible into or exchangeable or exercisable for, Class A ordinary shares of our company;

	●	“founders shares” are to our 4,312,500 Class B ordinary shares initially purchased by our sponsor in a private placement prior to our initial public (of which 75,000 shares were transferred to our independent directors) and the Class A ordinary shares that will be issued upon the automatic conversion of the founders shares at the time of our initial business combination (for the avoidance of doubt, such Class A ordinary shares will not be “public shares”);

	●	“initial shareholders” are to our sponsor, and other holders (if any) of our founders shares prior to our initial public offering;

	●	“letter agreement” refers to the letter agreement entered into between us and our initial shareholders, directors and officers on November 8, 2021, which is filed as an exhibit to this Annual Report;

	●	“management” or our “management team” are to our officers and directors;

	●	“private warrants” are to the warrants which were issued and sold to our sponsor and EarlyBirdCapital in a private placement which occurred simultaneously with the closing of our initial public offering (including warrants that were issued as a result of the over-allotment option being exercised in full), as well as any warrants that may be issued upon conversion of working capital loans;
	●	“public shareholders” are to the holders of our public shares, including our sponsor, officers and directors to the extent our sponsor, officers or directors purchase public shares, provided their status as a “public shareholder” shall only exist with respect to such public shares;

	●	“public shares” are to our Class A ordinary shares sold as part of the units in our initial public offering (whether they were purchased in our initial public offering or hereafter in the open market);

	●	“public units” are to the units (consisting of public shares and warrants) which were sold in our initial public offering;

	●	“sponsor” is to Finnovate Sponsor L.P., a Delaware limited partnership;

	●	“trust account” is the U.S.-based trust account at Goldman Sachs & Co. which is maintained by Continental Stock Transfer & Trust Company acting as trustee trust into which the proceeds of our initial public offering were placed;

	●	“warrants” are to our redeemable warrants sold as part of the public units in our initial public offering (whether they were purchased in our initial public offering or thereafter in the open market) and the private warrants;

	●	“working capital loans” are working capital loans that may be provided to us by our sponsor, an affiliate of our sponsor or certain of our officers and directors, up to $1,500,000 of which may be converted into warrants, at the price of $1.00 per warrant, at the option of the lender; and

	●	“$,” “US$” and “U.S. dollar” each refer to the United States dollar.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Some statements contained in this Annual Report are forward-looking in nature. Our forward-looking statements include, but are not limited to, statements regarding our or our management team’s expectations, hopes, beliefs, intentions or strategies regarding the future. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intends,” “may,” “might,” “plan,” “possible,” “potential,” “predict,” “project,” “should,” “would” and similar expressions may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. Forward-looking statements in this Annual Report may include, for example, statements about:

	●	our ability to complete our initial business combination, including with a technology-based business that is domiciled or centered in Israel, that carries out all or a substantial portion of its activities in Israel, or that have some other significant Israeli connection;

	●	our expectations around the performance of the prospective target business or businesses;

	●	our success in retaining or recruiting, or changes required in, our officers, key employees or directors following our initial business combination;

	●	our officers and directors allocating their time to other businesses and potentially having conflicts of interest with our business or in approving our initial business combination, as a result of which they would then receive expense reimbursements;

	●	our potential ability to obtain additional financing to complete our initial business combination;

	●	our pool of prospective target businesses in Israel;

	●	risks associated with acquiring a financial-technology-oriented business in Israel;

	●	the ability of our officers and directors to generate a number of potential acquisition opportunities;

	●	our public securities’ potential liquidity and trading;

	●	the lack of a market for our securities;

	●	the use of proceeds not held in the trust account or available to us from interest income on the trust account balance;

	●	the trust account not being subject to claims of third parties; or

	●	our current financial performance or following our initial business combination.

The forward-looking statements contained in this Annual Report are based on our current expectations and beliefs concerning future developments and their potential effects on us. There can be no assurance that future developments affecting us will be those that we have anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. These risks and uncertainties include, but are not limited to, those factors described under the heading “Risk Factors.” Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

PART I

Item 1. Business.

General

We are a blank check company incorporated on March 15, 2021 as a Cayman Islands exempted company and formed for the purpose of effecting a merger, share exchange, asset acquisition, share purchase, recapitalization, reorganization or other similar business combination with one or more businesses or entities, which we refer to throughout this Annual Report as our initial business combination. We have generated no revenues to date and we do not expect that we will generate operating revenues at the earliest until we consummate our initial business combination. To date, we have not selected any specific business combination target.

We may pursue a business combination target in any business or industry and across any geographical region, including technology-based businesses that are domiciled in Israel, that carry out all or a substantial portion of their activities in Israel, or that have some other significant Israeli connection, whether Israeli-developed technology, Israeli headquarters, substantial Israeli operations and/or historical Israeli roots.

Industry Opportunity

We believe that current trends in the high technology, innovation and complex manufacturing sectors in Israel provide very attractive acquisition opportunities which are consistent with our acquisition strategy. The growing Israeli ecosystem includes companies at development stages spanning from the startup phase to a greater degree of maturity in the scale-up business phase. The following factors contribute to our belief that we can leverage the unique talents of our management team, our sponsor and their respective affiliates to identify and complete an acquisition consistent with our investment criteria and acquisition strategy.

Highly successful Israeli high-tech market. Often referred to as the “Start-Up Nation,” Israel has become one of the most concentrated geographic centers for technological innovation. Although it has a population of just over nine million and a gross domestic product, or GDP, of approximately $401.9 billion in 2020 (according to the World Bank) and which is projected to grow by approximately 6.3% in 2021, 4.9% in 2022 and 4% in 2023. (as forecast by the OECD), in recent years Israel has been one of the most successful countries in developing technology and advanced manufacturing processes driven by technology. Under the OECD R&D Intensity Index (which measures investment in research and development, or R&D, as a ratio of GDP), Israel ranks first in the world, with its national spending on R&D at 4.9% of its GDP (as of 2018), according to the February 2020 publication of the OECD Directorate for Science, Technology and Innovation. According to the 2020 annual report of the Israel Innovation Authority (the “IIA 2020 annual report” and the “IIA” respectively) and according to the IIA’s 2021 Innovation Report , over 4,500 Israeli high-tech companies have reached the “growth stage” or “revenue stage” in 2020. In addition, Israeli technology companies’ exports have also risen consistently and reached almost $50 billion in 2020 – representing more than 43% of total Israeli exports. Approximately 15% of Israel’s GDP is derived from technology companies.

Dynamic, adapting Israeli innovation ecosystem. Israeli entrepreneurs have continuously positioned themselves as global leaders in a variety of fields, repeatedly being able to identify the emergence of new trends and segments early on, maintaining Israel’s position at the forefront of global innovation. For example, Israel’s innovation ecosystem produced hundreds of solutions addressing the unique challenges of COVID-19. These solutions included, among others, cyber-defense products designed to identify and thwart attacks in times of increased virtual presence and remote working environments, remote farm management systems and helping the elderly shelter under stay-at-home orders. The key sectors in which Israeli entrepreneurs have continued to position themselves as global leaders in 2020 and 2021 were artificial intelligence, cyber security and defense, fintech and the “Internet of Things”. Food-tech and agro-tech also remain key growth areas. These sectors are at the cutting edge of global innovation and have been promoted by the Israeli government through various government initiatives.

Maturing Israeli high-tech landscape. We believe that a growing number of companies within the Israeli innovation ecosystem would benefit from access to the capital markets, specifically through “going public” transactions. Over the last decade, the scale-up of existing companies has been a sustained trend in the Israeli high-tech industry, replacing the establishment of new start-up companies as the main driver of growth. We believe the maturity of companies in the Israeli high-tech ecosystem is evidenced by their ability to attract larger investments and retain capital in sectors such as artificial intelligence, cyber security, defense and fintech, trends which continued throughout 2021 and continue into 2022 despite the impact of COVID-19.

According to reports published by Israeli financial press, Israeli startups raised more than $2.2 billion during the month of April 2021 alone, which was the second successive month in which Israeli startups raised more than $2 billion, after raising $2.8 billion in March 2021. In total, Israeli tech companies raised $25.6 billion in 2021.

According to the 2021 Annual Report of the IVC Research Center (“IVC 2021 Report”), $25.6 billion was invested in 773 Israeli high tech deals in 2021, with an average deal size of $33 million, an increase of almost 150% from the total investment in 2020. According to the IVC 2021 Report, there were 77 deals of over $100 million each compared to 20 such deals in 2020. These $100 million plus deals totaled $14 billion – 55% of the total capital raised in 2021. During 2021, fintech companies captured 22 of such deals, compared to just five deals of similar size in 2020, making it the largest sector after cybersecurity in terms of total amount invested in Israeli high tech. Of the amount raised in 2021, foreign investments surpassed previous records, raising $18.6 billion, which represented 73% of total capital invested. We believe these investments are indicative of a pipeline of potential companies that have reached, or will reach shortly, the level of maturity that will enable them to turn to the capital markets as a viable next step in their lifecycle.

Attributes of the Israeli high-tech ecosystem that have contributed to its enhanced position include:

Highly innovative—According to the State of Innovation report as published in April 2019 by PwC and Start-Up Nation Central, there are more than 6,600 start-up companies in Israel, which is 14 times the concentration of start-ups per capita in Europe. Israel ranks seventh in the world overall on the Bloomberg 2021 Innovation Index and first in the R&D Intensity category, fifth in the High-Tech Density category and eighth in the Patent Activity category. This community of entrepreneurs, from a country with approximately 0.1% of the world’s population, attracts the highest rate of venture capital funding per capita in the world ($674 per capita in 2018 according to a report by Start-up Nation Central).

Educated and skilled workforce—According to 2017 OECD data, Israel is the third most educated country in the world behind only Japan and Canada, but ahead of the United States and South Korea. Israel has a very high percentage of engineers and scientists per capita and a very high ratio of university degrees and academic publications per capita, and ranks first in the world in the Researcher Concentration category in the Bloomberg 2021 Innovation Index. Israel has a high quality educational system and is among the most educated societies in the world, having been ranked 19^th overall in the 2019 Education Index included in the United Nations Development Programme’s 2020 Human Development Report.

Tax Incentives—The Israeli Law for the Encouragement of Capital Investments, 5719-1959, or the Investment Law, enables companies operating in Israel to benefit from a reduced company tax rate and investment grants, if certain conditions are met.¹³ Another incentive program offered by the government provides employment grants for R&D centers and large enterprises operating in Israel covering on average 25% of the employer’s cost of salaries for each new employee over a four-year period.

R&D Development hub for most of the world leading companies—As an entrepreneurial powerhouse and a hotbed for skilled labor, many of the world’s leading multinational companies have chosen Israel to set up major R&D and innovation centers. Microsoft, Google, Apple (three R&D centers), Amazon, Facebook, Ebay, SAP, IBM, Motorola, Berkshire-Hathaway, Intel, HP, Siemens, GE, GM, VW, Philips, Cisco, Applied Materials, J&J, EMC and Toshiba are just some of the more than 200 multinational corporations which are benefiting from a stream of acquisition and expansion opportunities in Israel. Such high concentration of many of the world’s most innovative companies in a small geographic space creates a professional ecosystem that enjoys a “spillover” effect creating wave after wave of startups led by experienced professionals brought up in strong and disciplined corporate cultures.

Government support—The Israeli government founded the Technology Incubator Program in 1991. According to a report issued by Deloitte’s Israeli affiliate, in 2016 there were over 25 technological and biotechnological incubators across the country, all of which have subsequently been privatized. The incubators offer government funding of up to 85% of early stage project costs for two years. So far, more than 1,100 projects have graduated from the incubators, with over 45% successfully attracting additional investments from other investors. In 2019, the IIA announced a streamlining of its investment and support programs to help nurture companies from seed to early stage, thus minimizing the risk to the investor and helping the projects develop into more complete technology companies. In addition, the IIA has an International Collaboration Division bringing funding and support from the European Union to Israeli companies through international cooperation and incentive programs as well as a groundbreaking collaboration program for smart cities with the city of Fukuoka, Japan. The principal support program provided by the IIA is the R&D Fund, which offers financial support for between 20% to 50% of the costs of an approved R&D program. The IIA also participates in bi-national funds, which are joint R&D programs with foreign counterparts such as China, Canada and the United States that grant financial assistance to Israeli companies for up to 50% of their R&D costs.

Strong venture capital and private equity industries—Israel’s innovation and start-up industry is complemented by flourishing venture capital and private equity sectors. The most active investors in Israeli high-tech companies in 2021 were foreign-based venture capital firms, including some of the world’s largest tech investors, such as Insight Partners (participated in 49 rounds), Bessemer Venture Partners (participated in 23 rounds), and Tiger Global Partners (participated in 16 rounds). This level of participation illustrates the breadth of innovative industries in Israel and the sustained attractiveness of such companies to foreign investors.

Notwithstanding the foregoing, effecting a business combination with a company located in Israel, or another jurisdiction outside of the United States, could subject us to a variety of risks that may negatively influence our operations. See the Risk Factor titled “If we effect a business combination with a company located in Israel or another foreign jurisdiction, we would be subject to a variety of additional risks that may negatively impact our operations” for more information on the risks attendant to acquiring a target business. Furthermore, if we determine to acquire a target business located outside of Israel, the positive aspects of consummating a business combination in Israel would not be applicable to our business going forward.

Acquisition Strategy

Our acquisition strategy is to identify and complete a business combination by exploiting what we believe is an untapped opportunity and offer a public-ready business a vehicle through which to enter the public marketplace, access capital markets and advance its business. We intend to focus on Israel-related companies, including companies focused on payments, insuretech, wealthtech, regtech, digital banking, fintech as a service (FAAS), banking as a service (BAAS), cyber area for financial institutions, blockchain and crypto, algo-trading and exchanges, and lending and credit line platforms, that have a proven model of commercial success and a track record in generating and growing revenues, and, in some cases, profits. We will also seek to identify companies that are developing disruptive technology with strong market potential in other verticals and geographies. We believe that we are uniquely positioned to leverage our sponsor’s and its affiliates’ successful track record of helping technology companies grow into large, successful publicly-traded entities, and their deep network of contacts and corporate relationships around the world, and in our target region, Israel, in particular. Our management team members have significant experience in executing transactions under varying economic and financial market conditions, allowing their network of contacts and corporate relationships to grow through sourcing, acquiring and financing businesses, and thereafter maintaining relationships with sellers, financing sources and target management teams. We intend to rely on the expertise of our management team, our sponsor and their affiliates and their proven deal- sourcing capabilities to provide us with a strong pipeline of potential targets.

We believe that our management team’s experiences in evaluating assets through investing and company building will enable us to source the highest quality targets. Our selection process will leverage the relationships of our management team with industry captains, leading venture capitalists, private equity and hedge fund managers, respected peers and a network of investment banking executives, attorneys and accountants. We also anticipate that target business candidates may be brought to our attention from various unaffiliated sources, including, among others, large business enterprises seeking to divest noncore assets or divisions. Together with our network of trusted partners, we intend to capitalize the target business and create purposeful strategic initiatives in order to achieve attractive growth and performance targets.

Investment Criteria

Consistent with our acquisition strategy, we have identified the following general, non-exclusive criteria and guidelines that we believe are important in evaluating prospective targets for our initial business combination. We will use these criteria and guidelines in evaluating acquisition opportunities, but we may decide to enter into our initial business combination with a target that does not meet one or more of these criteria and guidelines. We intend to focus on targets with the following attributes:

	●	Attractive, growth business

	●	Disruptive technology

	●	Business with revenue and earnings growth potential

	●	Strong competitive industry position

	●	Strong target management team

	●	Appropriate valuation

These criteria are not intended to be exhaustive. Any evaluation relating to the merits of a particular initial business combination may be based on these general guidelines as well as other considerations, factors and criteria that our management may deem relevant.

In evaluating a prospective target business, we expect to conduct a thorough due diligence review that will encompass, among other things, meetings with incumbent management and employees, document reviews, interviews with customers and suppliers, and inspection of facilities, as well as review of financial and other information which will be made available to us.

Sourcing of Potential Business Combination Targets

We believe that the operational and transactional experience of our management team and members of our sponsor (and the investors in the sponsor), and the relationships they have developed as a result of such experience, will provide us with a substantial number of potential business combination targets. Our management team and other members of our sponsor have in the past operated and invested in leading Israeli, global technology companies across their corporate life cycles and have developed deep relationships with organizations and investors operating around the world, and in our target region, Israel, in particular. This network has grown through sourcing, acquiring and financing businesses and maintaining relationships with sellers, financing sources and target management teams. Our management team members have significant experience in executing transactions under varying economic and financial market conditions. We believe that this network of contacts and relationships and this experience will help us to identify attractive Israel related technology-based businesses that can benefit from access to the public markets, and to execute complex business combination transactions, thereby enhancing shareholder value. In addition, we anticipate that target business candidates may be brought to our attention from various unaffiliated sources, including investment market participants, private equity funds and large business enterprises seeking to divest noncore assets or divisions.

We believe that we are uniquely positioned to leverage our sponsor’s, affiliates’ and management team’s successful track record growing Israeli technology companies into large, successful publicly-traded entities, and their deep network of relationships in Israel, as strong competitive advantages. We intend to utilize our management’s and sponsor’s expertise and their respective proven deal-sourcing capabilities to provide us with a strong pipeline of potential targets.

We believe that our management team’s and directors’ experiences in evaluating assets through investing and company building will enable us to source the highest quality targets. Our selection process will leverage the relationships of our management team with industry captains, leading venture capitalists, private equity and hedge fund managers, respected peers and a network of investment banking executives, attorneys and accountants. Together with this network of trusted partners, we intend to capitalize the target business and create purposeful strategic initiatives in order to achieve attractive growth and performance targets.

Our management team consists of professionals and senior operating executives of various companies with decades of experience and industry exposure in various Israeli high-tech industries. Based on our management team’s extensive experience and industry exposure, we believe we will be able to identify, evaluate the risk and reward of and execute on attractive acquisition opportunities.

In addition to our experienced management team, the partners of our sponsor have a strong track record both in the technology sector in general and in Israeli investments in particular, and are characterized by their investment expertise, deep technology company relationships and benevolent activism. One such limited partner is Stanley Hutton Rumbough, a private investor and descendant of Edward Francis Hutton, the founder of EF Hutton. Mr. Rumbough was most recently a founding investor in the Israel-based INX platform for digital tokens and trading.

Significant Activities Since Inception

On November 8, 2021, we consummated our initial public offering of 15,000,000 units and, on November 12, 2021, issued an additional 2,250,000 units pursuant to the underwriter’s full exercise of their over-allotment option. Each unit consists of one Class A ordinary share and three-quarters of a redeemable warrant of the Company, each warrant entitling the holder thereof to purchase one Class A ordinary share for $11.50 per share. The units were sold at a price of $10.00 per unit, generating gross proceeds to the Company of $150,000,000 and $22,500,000 at the respective closings.

Simultaneously with the closing of our initial public offering and the closing of the underwriter’s full exercise of their over-allotment option, we completed the private sale of an aggregate of 8,243,038 and 556,962 private warrants, respectively, to our sponsor and EarlyBirdCapital at a purchase price of $1.00 per private warrant, generating gross proceeds to us of $8,243,038 and $556,962, respectively.

Following the respective closings, a total of $153,000,000 and $22,950,000 were placed in U.S.-based trust account at Goldman Sachs & Co. which is maintained by Continental Stock Transfer & Trust Company acting as trustee.

Our units began trading on November 4, 2021 on the Nasdaq Capital Market, or Nasdaq, under the symbol “FNVTU.”

Our Class A ordinary shares and warrants began trading on December 8, 2021 on Nasdaq under the symbols “FNVT” and “FNVTW,” respectively.

Competitive Strengths

Status as a Public Company

We believe that our structure will make us an attractive business combination partner to target businesses. As an existing public company, we offer a target business an alternative to a traditional initial public offering through a merger or other business combination. In this situation, the owners of the target business would exchange their shares of stock or other equity interests in the target business for our ordinary shares or for a combination of our ordinary shares and cash, allowing us to tailor the consideration used in the transaction to the specific needs of the sellers. We believe that target businesses might find this avenue a more certain and cost-effective method to becoming a public company than a typical initial public offering. In a typical initial public offering, there are additional expenses incurred in marketing, roadshow and public reporting efforts that will likely not be present to the same extent in connection with a business combination with us.

Furthermore, once the business combination is consummated, the target business will have effectively become a public company, whereas an initial public offering is always subject to the underwriters’ ability to complete the offering, as well as general market conditions that could prevent the offering from occurring. Once public, we believe the target business would then have greater access to capital and an additional means of providing management incentives consistent with shareholders’ interests than it would have as a privately-held company. Public company status can offer further benefits by enhancing a company’s profile among potential new customers and vendors and attracting talented employees.

While we believe that our status as a public company will make us an attractive business partner, some potential target businesses may view the inherent limitations in our status as a blank check company as a deterrent and may prefer to effect a business combination with a more established entity or with a private company. These limitations include constraints on our available financial resources, which may be inferior to those of other entities pursuing the acquisition of similar target businesses; the requirement that we seek shareholder approval of a business combination or conduct a tender offer in relation thereto, which may delay the consummation of a transaction; and the existence of our outstanding warrants, which may represent a source of future dilution.

Financial Position

With funds available in our trust account in an amount of approximately $175,950,000 plus interest assuming no redemptions (following the payment of $3,450,000 million to the underwriters as underwriting fees in our initial public offering) and after payment of $6,037,500 of advisory fees to be paid to EarlyBirdCapital in connection with the business combination before additional fees and expenses associated with our initial business combination, we offer a target business a variety of options such as creating a liquidity event for its owners, providing capital for the potential growth and expansion of its operations or strengthening its balance sheet by reducing its debt ratio. Because we are able to complete our initial business combination using our cash, debt or equity securities, or a combination of the foregoing, we have the flexibility to use the most efficient combination that will allow us to tailor the consideration to be paid to the target business to fit its needs and desires. However, we have not taken any steps to secure third party financing and there can be no assurance that it will be available to us.

Effecting a Business Combination

General

We are not presently engaged in, and we will not engage in, any substantive commercial business for an indefinite per

SEC Form 10-K filed by Finnovate Acquisition Corp.