Special purpose acquisition companies, or SPACs, were big business in 2021 when everyone from lifestyle mogul Martha Stewart to politicians like Paul Ryan was investing in them. Also known as blank check companies, SPACs offered firms a back door route to becoming a public company by getting acquired by a shell company. But the 2021 trend didn’t last long as more than 60% of blank check companies from that year couldn’t complete a merger and had to return money to investors, giving SPACs a dodgy name in the process. Now, blank check companies have returned, but this year’s crop is a different breed. The celebrities are gone, the buzz has faded, and many SPACs are coming from serial sponsors who are, well, just a little dull.
So far in 2025, 61 blank check companies have gone public, raising $12.4 billion as of June 26, though it’s hard to assess their success since it typically takes months for a SPAC to complete an acquisition. This compares to just 16 SPACs for the same period last year that collected $2.5 billion, according to Dealogic. So far none of this year’s deals have found a merger partner.
