SPAC Market Dynamics H1 2021

2020 has been a booming year with 248 SPAC IPOs on Wall Street. Q1 2021 continued even hotter, until the US Security Exchange Commission came up with some regulatory proposals aiming to protect retail investors.

Since Q2 2021, SPACs are getting on track again, but now becoming more mature and less speculative than some SPACs during 2020 and Q1 2021.

That does change the way SPACs should be structured now to set the ground for success.

With more than $180B cash in SPAC trust accounts looking for acquisition targets, a total of about $1T in enterprise value may come public via SPAC mergers.

As an answer to over-heated SPAC market dynamics especially in Q1 2021, PIPE Financing decreased tremendously since February 2021, down to approx. one third compared with February.

SPACs should for now better be structured in a way that they will not be depending on PIPE financing for deal closure.

We thank SPAC Research for this great work.

Important note:
SPAC Consultants is not offering and/or providing investment advisory services in the sense of regulated investment advisory services as per respective EU Directives and their implementation into national law of EU Member States. Instead, SPAC Consultants offers SPAC Project Management services and consults regarding the general principles of US SPACs and their business structuring. Any investment, legal and financial advice that may become necessary for possible sponsors and investors at advanced stages will be provided by the network partners of SPAC Consultants.