SPAC-Mania is Dying Down
May 6, 2021
SPAC-Mania is Dying Down
The hype surrounding Special Purpose Acquisition Companies (SPACs) and the companies they have taken public through 'reverse IPO' reached a peak in early 2021.
LikeFolio data shows that investors' enthusiasm for these speculative investments has declined -44% QoQ on a 30-day moving average.
SPAC’s in the U.S. have already raised more money this year than in all of 2020, but the resulting public companies have proven to be especially susceptible to market volatility.
Many post-merger SPACs have sold off in recent months, mirroring the downtrend seen in SPAC-related chatter from retail investors.