If you were an investor who got burned during the SPAC craze of 2020 and 2021, I wouldn’t blame you for swearing off special purpose acquisition company deals forever. In the wake of Covid-19 stimulus payments, eager retail investors, and the zero-rate environment, SPAC deals became an increasingly popular way to take a company public and raise a lot of money.
But there were plenty of misses. For every deal that turned into a stable company—such as DraftKings (DKNG) and SoFi Technologies (SOFI)—there were some real stinkers, such as Nikola (NKLAQ), Canoo (GOEVQ), and Lordstown Motors.
