November 12, 2020 | less than a minute read

Is the SPAC Boom About to End?

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Jeremy D. Glaser

Member / Co-Chair, Venture Capital ＆ Emerging Companies Practice

Get in touch

Jeremy D. Glaser

Member / Co-Chair, Venture Capital ＆ Emerging Companies Practice

SPACs hit records in 2020 but the boom may be ending - the number of new SPAC offerings has declined and the targets for offering size have been cut. Can this new financing vehicle continue to grow?

A boom in special purpose acquisition companies appears to be waning, based on new registrations for initial public offerings of blank-check companies so far in November. The lull follows a three-month surge and arises after more than a dozen cut their initial public offering targets in October. Investor caution is warranted for these deals, which produce more losers than winners, according to IPO specialist Renaissance Capital.