Welsbach Capital Markets Insights: January 2026 Edition
We spend hours researching, and talking to the smartest founders, dealmakers and investors in the SPAC landscape. This is our attempt to give you a short 5-10 minute summary on how we are thinking about the macro, markets & SPACs, and what lies ahead. Hundreds of hours summarized, so you don’t have to.
Visit our website at Welsbach Group to learn more about our services and expertise.
Congratulations to David Wilcox, Frank Moon and the Evolution Metals Team for a Successful deSPAC
Welsbach has demonstrated deep SPAC execution expertise through both sponsorship and advisory leadership:
Launched Welsbach Technology Metals Acquisition Corp. (WTMA), which IPO’d on NASDAQ in January 2022.
Served as strategic advisor on the EMAT de-SPAC, culminating in its NASDAQ listing on January 6, 2026.
Executed a disciplined four-year SPAC lifecycle in the critical minerals sector.
Supported Evolution Metals’ public debut, with shares rising 183.9% on day one to $21.29, reflecting strong investor demand.
Welsbach is a leading cross-border SPAC and capital markets advisory firm founded in 2021, focused on connecting high-growth companies, particularly from Asia and other innovation hubs, with institutional capital markets. Leveraging deep regulatory expertise and global institutional networks, Welsbach delivers end-to-end SPAC and capital markets solutions to help visionary companies access public market liquidity.
Exploring growth capital or a U.S. listing? Partner with the Welsbach team to make it happen. Reach Us: Click Here
Straight from the Top: What Welsbach’s Leadership Is Saying
Daniel Mamadou-Blanco (Co-Founder - Welsbach)
“Markets misprice long-cycle optionality, until they don’t...
In critical minerals, value often sits dormant for years, ignored by short-term models.
Then the world changes! Supply chains matter, geopolitics re-enters the equation and that optionality reprices fast.”
Sankalp Shangari (Partner - Welsbach)
“We thrive on helping growth-stage companies (Series A and beyond) solve for their next chapter, whether that’s securing growth capital or building the long-term infrastructure for a US listing”
Quick Macro TL;DR
THE GOOD:
AI & Tech Innovation: US markets received strong support from enthusiasm around AI and tech-related earnings, with major tech names driving significant gains and broader stock funds reporting strong performances into Q3.
Strong Corporate Earnings & Risk-On Sentiment: After mid-year recalibration, solid earnings and improved risk appetite contributed to continued upside across equities, broadening gains beyond mega-cap tech during many parts of 2025.
Rally Backed by Fed’s Policy: Markets recovered from early-year volatility as central banks’ supportive posture and rate-cut expectations helped lift risk assets overall, encouraging investor re-entry and positive sentiment.
Market Impact: The S&P 500 marked a third straight year of double-digit gain (~16%), while the Nasdaq outperformed with ~20% gain for the full year 2025, driven by strength in tech and growth stocks.
THE BAD:
Trade & Tariff Uncertainty Driving Early 2025 Rout: Aggressive tariff announcements in April triggered massive equity sell-offs, significant volatility, and one of the largest short-term declines in US stock history
Elevated Valuation/Speculation Risks in Tech: Broad speculation around AI valuations created concerns about an “AI bubble” weighing on sustainable market gains, with warnings from major financial figures about risks of overheating.
Sluggish Consumer & Economic Growth Pressure: Dampened consumer confidence and talk of slowing domestic demand (coupled with macro headwinds like inflation concerns) weighed on cyclical and consumer sectors at times.
Market Impact: Both the S&P 500 and Nasdaq sold off sharply, with the S&P 500 declining more than 10% and the Nasdaq over 11% in a two-day span, driven by escalating tariff and trade-war concerns.
THE IPOs & SPACs RESURGENCE:
IPO Activity: December 2025 saw 30 IPOs led by Healthcare and Business Services, bringing 2025 totals to 200+ amid strong markets and improved risk appetite.
SPACs Are Back: SPACs made up 70% of monthly IPOs, with 100+ SPAC IPOs in 2025. December included 4 De-SPACs and 5 merger announcements, reflecting a more disciplined, institutionally driven cycle.
Other SPAC Merger: Embed Financial Group Cayman (EFGH) agreed to merge with WinVest Acquisition Corp. at a ~$425m pro forma EV, advised by Welsbach.
Separately, Columbus Circle Capital Corp I successfully completed its merger with ProCap BTC, forming ProCap Financial, Inc., a Bitcoin-focused financial services platform that raised over $750 million in gross proceeds at closing in December 2025.
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The US Market: A Global Powerhouse
The United States continues to reinforce its position as the undisputed global equity hub, commanding the largest share of global market capitalization by a wide margin. With an equity market capitalization of approximately $61.6 trillion, the US alone accounts for ~58% of global equity market value.
Over the past decade, the S&P 500 has delivered average annual returns of about 14%, underscoring the U.S. market’s resilience and growth potential. Its deep liquidity, advanced financial infrastructure, and strong regulatory framework continue to attract global investors seeking both stability and innovation
Fundraising in the USA
US fundraising across private and public markets remains robust.
Private Equity: Raised ~$278 billion in 2025.
Public Markets: By December 2025, a total of 345 companies have listed on Nasdaq, with 144 of these being SPACs, accounting for over 42% of all new listings. This marks significant growth compared to 2024, when SPACs represented only 19% of Nasdaq listings, totalling 57 companies.
The Surge of SPACs
Rebound: SPAC activity surged after 2023, with ~84% growth in 2024 and a breakout in 2025.
Dry Powder: 287 active SPACs hold $40.4bn.
Searching: 181 SPACs seeking targets, with $31.2bn in trust.
Announced Deals: 106 SPACs have announced mergers worth $65.6bn.
Closed Deals: 43 mergers completed, totaling $38.3bn.
Pipeline: 96 pre-IPO SPACs could add $13.9bn.
SPAC IPOs (Dec’25)
Deal activity stabilized, with sponsors prioritizing quality over velocity
December Activity: 22 SPAC IPOs raised ~$5.3bn, one of the strongest months in 2025.
Deal Mix: 4 De-SPAC IPOs and 5 merger announcements across Automotive, Healthcare, Financial Services, and Industrial sector
Largest Raise: Churchill Capital XI led the pack with $414m in proceeds.
Smallest Raise: Social commerce raised the minimum on the list with $100m in proceeds.
December alone saw 28 pre-IPO entries, representing over $4.2 billion in expected post-listing capital.
5 SPAC mergers were announced, with a combined equity value of $4.0 billion.
Outperformance skewed towards healthcare, technology, and infrastructure-adjacent assets, aligned with long-duration growth themes.
Source: SPAC Research
Heatmap: Growing Sectors and Geographies
Growing Sectors in SPACs:
SPACs in 2025 are focusing heavily on long-term technology and sustainability trends.
Fintech & AI: Continuing to drive innovation in financial services.
Clean Energy & Sustainability: A major focus for investors looking for long-term impact.
Space Technology, Biotech, and Infrastructure: Other key areas attracting SPAC investment.
Crypto-linked SPACs: Have revived, with over $10 billion raised in 2025 alone, particularly those targeting digital asset treasury strategies.
Leading Geographies:
United States: It retains the spot for the largest geography in SPAC space
21 out of the 44 closed deals were from US in 2025
41 out of the 105 live deals are from US in 2025
Asia: Fastest-growing SPAC hub, led by tech, digital platforms, and green energy, with Singapore, Malaysia, and South Asia as key centers.
8 out of the 44 closed deals were from Asia in 2025
33 out of the 105 live deals are from Asia in 2025
Conclusion
In 2025, the SPAC market re-entered an institutional phase marked by disciplined issuance, improving completion rates, and a renewed focus on fundamentally sound transactions. Momentum was driven by repeat sponsors, a higher-quality deal pipeline, and greater regulatory clarity, while the U.S. remained the market anchor alongside growing cross-border sourcing from Southeast Asia. As “SPAC 2.0” took hold, investor preference shifted decisively toward strong governance and disciplined valuations, supporting selective growth across fintech, AI, clean energy, and digital assets.
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