Are SPACs a good idea for startups?

On the plus side, SPACs are lauded by supporters for being a faster, more efficient route for strong startups to enter the public markets and thus raise money from more investors (and giving sight of an exit to private investors): this is very much the position Near and KludeIn are taking.

How much money has a SPAC raised in 2021?

Interest in SPACs increased in 2020 and 2021, with as much as $83.4 billion raised in 2020 and $162.5 billion in 2021. As of March 13, 2022, SPACs have raised $9.6 billion. What Are the Advantages of a SPAC?

What are SPACs & how do they work?

SPACs are publicly traded corporations formed with the sole purpose of effecting a merger with a privately held business to enable it to go public. Compared with traditional IPOs, SPACs often offer targets higher valuations, greater speed to capital, lower fees, and fewer regulatory demands.

How many SPACs are there?

In 2019, 59 were created, with $13 billion invested; in 2020, 247 were created, with $80 billion invested; and in the first quarter of 2021 alone, 295 were created, with $96 billion invested. In 2020, SPACs accounted for more than 50% of new publicly listed U.S. companies.