I thought the SPAC market was dead, boy was I wrong...
With the IPO market being shuttered by the implementation of tariffs, April has been busy for SPACs.
With the IPO market being shuttered by the implementation of tariffs, April has been busy for SPACs. Twelve new SPACs came to market, locking up $2.7 billion of cash in trust. There were also 4 de-SPAC mergers for a total enterprise value of $5.8 billion. So, we saw a net increase in SPACs looking for mergers. That brings the total number of SPACs looking for a merger to 120, up from 106 per my last update.
In addition, 17 new SPACs filed their S-1s, looking to bring a supply of fresh cash of $3.2 billion. This new wave is bringing a mix of repeat sponsors and first-timers, like crypto influencer Tony Pompliano. He is bringing ProCap Acquisition Corp, a $200 million SPAC that "plans to target the financial services industry, focusing on businesses in the US."
This is such a contrast from a year ago, when the then-Chairman of the SEC had declared victory over SPACs.
Today, I want to dwell on why SPACs have such a bad rep. For sure, the market has seen its share of bad actors. However, there is a massive negative bias from the financial press. De-SPAC mergers happen frequently, just like planes land on the tarmac of Heathrow airport; the press only reports the news of planes that crash land, not the regular landings.
When it comes to SPACs, the financial press tends to write about the deals that go wrong. Yet, many companies that came to the public market via a de-SPAC merger have had a stellar performance. In my database, there are over one hundred companies whose share price has evolved positively after their de-SPAC mergers.
Take a look at these, (or download the enclosed PDF file) to get an idea. Shortly after the start of trading as a merged entity, the share price oscillates around the $10 starting price, and eventually it soars; that is, if the company does well (and market conditions are supportive). Listen, the reason why the share price goes up instead of down is simple: there are more buyers than sellers.
As long as a de-SPAC merger deal is structured correctly, there is no reason why the share price should drop like a stone. Of course, the choice of capital instruments on the PIPE is a key factor. If you stuff the company with convertible notes that carry downward resettable strikes, you can expect a rapid descent into hell.
When it comes to financing businesses, I still see many companies trying to raise large amounts of capital in the private markets without considering an SPAC merger. My message to them is "wake up!" because the era of private equity firms lining up to be minority investors in private companies is over.
SPACs are built to be minority investors. They bring capital, credibility, and access to public markets. If you're ignoring them, you're willfully blind to one of the few real options still on the table. I have written a book about why SPACs make sense. It is called "The D.R.E.A.M.S Protocol," and it is available on Amazon. Drop me a line if you want a dedicated copy, and I'll send you one.
The complete list of SPACs and their details as of April 2025 is behind the paywall. Here you can get a snippet of what the list looks like
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If you subscribe now, you can access the entire file with all the information as of April 2025 (just go to the paid post or email me). The next month will carry the list with the latest update,
Bear in mind that in certain cases, there may not be a website or even a contact email. Details may also have changed since the last update. You are always encouraged to double-check the details of the vehicles that interest you by checking the SEC website.