The Destruction Index

A comprehensive damage assessment of the SPAC bubble. Every metric computed from real data — total value destroyed, sector death rates, the price funnel from $10 to $0, sponsor track records, and the year the reckoning arrived.

Total Value Destroyed

$94.8B

Peak market cap of all bankrupt SPACs

Bankruptcies

24

Out of 46 tracked SPACs

Avg Time to Bankruptcy

28 months

Fastest: Quanergy Systems (9mo)

Year of Reckoning

2023

14 bankruptcies in one year

Sector Death Rates

Percentage of SPACs that went bankrupt by sector

The $10 to $0 Funnel

Where every SPAC dollar ended up — from trust value to current price tier

5
$10+(11%)
2
$5-$10(4%)
4
$2-$5(9%)
0
$1-$2(0%)
6
<$1(13%)
29
$0 (Dead)(63%)

Sponsor Track Records

How serial sponsors fared across multiple SPACs

Social Capital Hedosophia
3
1
4 SPACs
Tortoise
2
2 SPACs
Bankrupt Zombie Survivor

Year of Reckoning

When the SPAC bankruptcies actually hit

The Bottom Line

The SPAC boom of 2020-2021 was the largest wealth transfer from retail investors to insiders in modern market history. Sponsors who put up as little as $25,000 walked away with founder shares worth millions, while the companies they brought public destroyed tens of billions in shareholder value.

The destruction wasn't evenly distributed. EV and clean energy SPACs bore the brunt, with bankruptcy rates exceeding 60% in some sectors. The median time from SPAC IPO to bankruptcy was under 3 years — barely enough time for the lockup periods to expire and insiders to sell their shares.

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