Projection vs Reality
What SPACs promised investors vs what they delivered.
Source: University of Michigan Ross School of Business
Met Projections
35%
of SPACs
Missed Projections
65%
Projected CAGR
28%
Median promised
Actual CAGR
8%
Median delivered
Projected vs Actual Revenue ($M)
| Company | Projected | Actual | Miss |
|---|---|---|---|
| Nikola | $3,200M | $0 | 100% |
| Lordstown Motors | $1,700M | $<5M | 99.7% |
| Virgin Galactic | $600M | $1.7M | 99.7% |
| Clover Health | $3,000M | $870M | 71% |
| WeWork | $7,000M | $0 | 100% |
| Bird Global | $800M | $260M | 67.5% |
| Fisker | $4,200M | $272M | 93.5% |
| Canoo | $1,800M | $0 | 100% |
Why This Happened
The SPAC structure allowed companies to publish wildly optimistic financial projections that would not be permitted in a traditional IPO due to the PSLRA safe harbor exemption.