SPAC Bubble Collapses As Investors Redeem In Record Numbers

Last year was the year of the SPAC. In 2021, there were 613 SPAC IPOs, up from 248 in 2020. IPO proceeds also increased from $83 billion in 2020 to more than $160 billion in 2021. There were 267 de-SPAC deals announced and 199 were closed. However, the market has quickly fallen back to earth this year. Increased scrutiny from the Securities and Exchange Commission and other regulatory agencies as well as intensified competition for targets and funding sources are two factors that have hit demand in the market, resulting in a sudden slowdown. Q1 2022 hedge fund letters, conferences…