SPACs (Special Purpose Acquisition Companies)

SPACs promised a fast track to public markets but delivered average losses of over 50% within two years of merger for the hundreds launched in 2020-2021. Regulatory scrutiny and poor underlying businesses—like electric vehicle startups that folded—led to a 70% rate of delisting or distress, with few blank-check companies retaining even 20% of their initial value, underscoring the hype.