The enthusiasm for SPACs surged in 2020 with a record 248 deals, but their performance has significantly waned since, resulting in an 85% average loss.
Chamath Palihapitiya, a former Facebook executive, played a crucial role in popularizing SPACs, advocating them as a democratizing force for investors against Wall Street.
Despite the initial excitement, the average return from SPACs has been dismal, highlighting a shift in investor sentiment as SPAC deal numbers dwindle.
In 2024, SPAC activity has slowed dramatically, with only 34 deals finalized, suggesting a cooling market after excessive hype and poor performance.
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