US Special Purpose Acquisition Companies: Market 2020 Review

SPAC IPOs surged in 2020, with the number of deals growing by 320% YoY and the capital raised growing by 513% YoY since 2019.SPACs have managed to raise more capital in 2020 than the cumulative amount between 2010–19.

The sudden popularity of SPAC IPOs has also allowed these to outshine traditional IPOs, both in terms of capital raised and the number of IPOs issued. SPACs are going mainstream, with popular companies including Draftkings and Open Lending opting for this mode of listing, opening the door for more marquee names in the future. Momentum is expected to continue in 2021, with an increase in the number of sponsors going to market and expansion in the amount of capital as well as ticket size.