Who Benefits the Most From a SPAC

Who Benefits the Most From a SPAC

Exit Strategies

Who Benefits the Most From a SPAC

Special-purpose acquisition companies (SPACs) are the new big money status symbol, but who really wins out in the end?

By Brit Morse , Assistant editor, Inc.@britnmorse

Photo: Getty Images/Illustration: Chloe Krammel

Special-purpose acquisition companies (SPACs), otherwise known as blank-check companies , are all the rage. But among company founders, founders of the SPAC, and investors, who benefits the most from them?

Put simply, SPACs are companies created with the sole purpose of raising money to buy other companies, and taking them public. SPACs have raised more tha n $56 billion in 147 IPOs,  according to SPACInsider, far surpssing last year's $13 billion. And according to Bloomberg , more than 60 SPACs have formed since the beginning of the year. 

And there's a reason they're so popular. SPACs are often faster and simpler