SPACs have had a lot of media attention in the last few months, but what are SPACs after all?
A SPAC, also known as a “blank check company”, is a shell company with the sole purpose of raising capital through investments in an IPO to merge with an existing company. Private owned companies found that SPACs are a quicker (and most times better) way to go public than going for the whole IPO process.
SPACs are not something new, they have been around for decades, but in 2020 they experienced a boom. In data collected by SPACInsider, there were 248 SPAC IPOs in the US throughout 2020, compared to only 59 in 2019. Before that, the average number of SPACs a year would be around the 20 mark.
Read more in the full article: SPACs: What’s next for FinTechs?