Should You Invest in SPACs? (Part 1)

The 7investing Podcast · Jul 8, 2021 · 29m

Special purpose acquisition companies -- commonly known as "SPACs" -- are becoming increasingly popular in recent years as a way for companies to reach the public markets. While there were only 59 companies that chose to do a "SPAC IPO" in 2019, more than 360 have already taken place thus far in 2021. The total value of funds raised from those SPAC IPOs this year has exceeded $112 billion, and there are reportedly more than 300 more SPACs that have raised funds and are looking for a target.

But what will the modern SPAC Race mean for investors? Is this indeed a more capital-efficient way for…