The Rise and Fall of SPACs

This chapter explores the meteoric rise of SPAC IPOs in 2020 and 2021, driven by a unique blend of market conditions and investor interest. It contrasts the initial explosive growth with the subsequent decline due to oversaturation and lack of suitable acquisition targets, while examining the evolving dynamics of the SPAC market. The discussion also addresses regulatory influences and the ongoing appeal of SPACs as a funding route for companies with robust financials and experienced management.