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Transcript
00:00Was the 2020 SPAC boom a failure?
00:03A special purpose acquisition company, or SPAC, as they were commonly referred to,
00:08is a company that raises money through public offerings for an outlined purpose
00:12and then uses the money raised to acquire and scale a company at a later date.
00:17SPACs are commonly criticised for circumnavigating the regulation that traditional IPOs are required to adhere to
00:24and for raising money without an actual company or product to point to.
00:27Today, over half of the SPACs issued in 2020 and 2021 are down 40% since their initial offering
00:35and with many retail investors left holding the bag,
00:38it seems those who warned against investing in SPACs have been proved right for now.
00:44As a result, in 2022, there have been only 67 SPAC IPOs, raising some $11.6 billion,
00:51compared with 613 SPACs, raising $162.5 billion in 2021.
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