SPACs are back — maybe just with the same old playbook and players
Many assets from the last boom still aren’t looking great.
After a pandemic-era surge that ended in a wave of flameouts, Special Purpose Acquisition Companies (SPACs) — “blank-check” firms that raise money via IPO, then look to merge with a private company — are making a comeback.
According to Bloomberg, US SPACs have raised $11 billion so far in 2025, more than 5x the total at this point last year, and now account for nearly two-thirds of all US IPO volume.
Driving the revival are some familiar names. Goldman Sachs is reportedly returning to the SPAC business after a three-year pause, only with a more selective approach. Chamath Palihapitiya, once dubbed the “SPAC King,” said last week he’ll “probably” launch another, as he concedes his last run “wasn’t a success by any means.” Meanwhile, regulatory tailwinds may be helping, with new SEC Chair Paul Atkins signaling a potential rollback of the stricter rules imposed under his predecessor.
However, cautionary specters from the 2020-21 SPAC frenzy still loom large.
Many of the pandemic-era cycle’s high-profile SPACs have cratered since their IPOs, due to overhyped projections, rising interest rates, and tougher scrutiny. Palihapitiya’s own deals — including Virgin Galactic, Clover Health, Opendoor, and Lucid — have mostly plunged 70% to 90% from their IPO prices (perhaps an explanation for why 71% of respondents in his recent X poll said he shouldn’t return). QuantumScape, despite jumping 35% yesterday, remains far from its peak, having never generated revenue, while several others have been delisted.
There are, of course, a few exceptions. Trump Media surged on political momentum despite its weak fundamentals; DraftKings has ridden the sports betting boom; SoFi Technologies remains a rare win from Palihapitiya with strong consumer traction; and Hims & Hers has built buzz in telehealth — though it certainly looks a little under the weather this week.
Yet many of the old problems persist. SPACs are once again chasing hyped sectors du jour, like crypto, quantum, and autonomous vehicles, and over 90% of completed SPAC deals now trade below their IPO price, per Reuters.
