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. This is significantly worse than the typical IPO, which historically loses only 10% over the same period, and the trend's collapse has been 30% faster than the average investment bubble since 2000. 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.