The special purpose acquisition company (SPAC) has been one of Wall Street’s most headline-worthy financial vehicles over the past five years - but after its 2020–21 boom and 2022 slump, the past year has seen a notable resurgence of SPACs, albeit in a more cautious, structurally improved form.
A Comeback Rooted in Correction
During the pandemic era, SPACs surged: in 2021 alone, some 600-plus SPAC IPOs raised well over $160 billion. But by 2022–23 the tide turned. Rising interest rates, regulatory scrutiny (especially by the U.S. Securities and Exchange Commission) and the poor post-merger performance of many targets dampened enthusiasm.
Now, beginning in late 2024 and accelerating in 2025, SPACs are showing signs of renewal: fewer deals than the frenzy at the peak, but better-quality deals, stronger institutional backing and clearer regulatory guardrails.
By mid-2025, about 49 SPAC IPOs had already been completed - nearly matching full-year
In short: the SPAC market is not back to its bubble-era magnitude, but it is back with improved risk control and structural rigor.
What’s Changed - and Hopefully for the Better
Several meaningful shifts distinguish this new SPAC wave from the 2020–21 era:
Deal size & scope: Instead of mega-SPACs chasing exotic targets, many new vehicles are moderate sized (e.g., raising $100-300 million) with clear search strategies.
Regulatory & structural improvement: The SEC adopted final rules in January 2024 that increase transparency around de-SPAC transactions and align liability between SPAC targets and traditional IPOs.
Sponsor experience matters: Rather than first-time blank-check firms, many new SPACs are launched by seasoned sponsors who have weathered the last cycle.
Investor caution: Redemption rates continue to be high in many deals, and sponsors are more aware of the fate of many earlier SPAC targets (most of which under-performed).
Taken together, these changes increase the odds that this resurgence is not simply a repeat of the 2021 boom - but rather a more matured, self-correcting version.
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A Few SPAC “Winners” From the Earlier Surge
While most SPAC-listed companies disappointed, a handful stood out. Some examples:
Hims & Hers Health (HIMS) merged via SPAC in 2021 and has since multiplied its share price and delivered profitable revenue performance.
NuScale Power (SMR) merged via SPAC in 2021 and has increase to has high as $57 just last week as money flows into the nuclear energy renaissance.
These serve as cautionary tales too: while they performed relatively well, many peers did not, and today sponsors invest with far more discipline.
Some of the worst performers have already filed for bankruptcy (Nikola, 23andMe, Virgin Galactic, and more). Then there are a handful of SPACs that are down huge, but continue to hang around despite being down over 80%. They include Lucid (LCID), Ginko Bioworks (DNA), and Marketwise (MKTW).
What to Watch Going Forward
The 2025-style SPAC cycle will hinge on a few key variables:
Quality of the target company: Firms going public via SPAC must show clearer path to profitability and credible business models.
Redemption behavior: If too many original investors redeem early, the public company ends up with a weak float and shaky performance.
Market/regulatory environment: Rate cuts or liquidity flows could boost SPAC appetite; regulatory missteps could derail momentum.
Post-merger execution: Even the best-structured SPAC won’t succeed if the merged company fails to execute.
Here is a list of a couple SPAC mergers this year…
· GrabAGun Digital Holdings (PEW)
· Kodiak AI (KDK)
In short, SPACs are once again opening the door for ambitious companies to hit the public markets - but this time, it’s a smarter, more disciplined crowd walking through.
The wild days of 2021 are gone. What we’re seeing now is a more mature second act - sponsors with real experience, better oversight, and deals backed by stronger fundamentals. The frenzy has cooled, but the opportunity hasn’t.
For investors, this new generation of SPACs could quietly become one of the most exciting corners of the market again - not because of hype, but because the lessons of the past few years have forged better quality deals.
So yes, SPACs are back. But they’re leaner, wiser, and built to last this time around.
Here’s to the future,
Matt McCall
Editor, Market Insights
