Projection vs Reality

What SPACs promised investors in their proxy statements vs what they actually delivered.

Source: University of Michigan Ross School of Business · 62 SPACs analyzed

Missed Projections

95%

of 62 SPACs

Median Miss

81.7%

below projected revenue

Total Gap

$57.7B

$79.5B promised → $21.8B delivered

Worst Miss

100%

Joby Aviation

62 SPACs shown

Top 20 Biggest Projection Misses

Projected (cyan) vs Actual (red) revenue in $M

Projected vs Actual Revenue

Points below the diagonal missed projections. Most did.

CompanySectorYearProjectedActualMiss %Return
Joby AviationJOBYAerospace/Defense2021$2.0B$0M100%-45%
Archer AviationACHRAerospace/Defense2021$1.0B$0M100%-15%
Arrival SAARVLEV/Automotive2021$14.0B$1M100%-100%
Lilium NVLILMAerospace/Defense2021$1.0B$0M100%-100%
QuantumScapeQSEV/Automotive2020$500M$0M100%-97%
CanooGOEVEV/Automotive2020$1.8B$1M99.9%-100%
Lordstown MotorsRIDEEV/Automotive2020$1.7B$5M99.7%-100%
Virgin GalacticSPCEAerospace/Defense2019$600M$1.7M99.7%-98.5%
REE AutomotiveREEEV/Automotive2021$400M$2M99.5%-98%
MomentusMNTSAerospace/Defense2020$200M$1M99.5%-100%
Astra SpaceASTRAerospace/Defense2021$300M$4M98.7%-98.8%
HeliogenHLGNClean Energy2021$200M$3M98.5%-100%
NikolaNKLAEV/Automotive2020$3.2B$50M98.4%-100%
Wejo GroupWEJOTechnology2021$300M$5M98.3%-100%
AEyeLIDRTechnology2021$300M$5M98.3%-95%
Advent TechnologiesADNClean Energy2021$150M$8M94.7%-97%
FiskerFSREV/Automotive2020$4.2B$272M93.5%-100%
ViewVIEWReal Estate2020$800M$54M93.3%-100%
Innoviz TechnologiesINVZTechnology2021$200M$15M92.5%-85%
Banzai InternationalBNZITechnology2023$50M$4M92%-98%
SatellogicSATLAerospace/Defense2021$100M$8M92%-88%
Danimer ScientificDNMRIndustrials2020$500M$48M90.4%-99.2%
Better Home & FinanceBETRFintech2021$1.4B$145M89.6%-99.5%
XosXOSEV/Automotive2021$800M$86M89.3%-95%
GetaroundGETREV/Automotive2022$400M$45M88.8%-99%
Offerpad SolutionsOPADReal Estate2021$4.0B$470M88.3%-65%
SkillzSKLZMedia/Entertainment2020$800M$95M88.1%-99.7%
LatchLTCHReal Estate2021$300M$42M86%-100%
Butterfly NetworkBFLYHealthcare2020$500M$72M85.6%-92%
Greenidge Generation HoldingsGREEFintech2021$300M$55M81.7%-97.5%
OwletOWLTHealthcare2021$300M$60M80%-95%
Ginkgo BioworksDNAHealthcare2021$1.0B$249M75.1%-97.5%
ChargePoint HoldingsCHPTEV/Automotive2020$2.0B$507M74.7%-91%
Clover HealthCLOVHealthcare2021$3.0B$870M71%-74.4%
Cazoo GroupCZOOEV/Automotive2021$4.0B$1.2B70%-100%
Cipher MiningCIFRFintech2021$500M$150M70%-73%
Blink ChargingBLNKEV/Automotive2018$500M$150M70%-97.7%
Hippo HoldingsHIPOFintech2021$600M$182M69.7%-82%
Bridger AerospaceBAERAerospace/Defense2022$200M$65M67.5%-90%
Bird GlobalBRDSEV/Automotive2021$800M$260M67.5%-100%
MatterportMTTRTechnology2021$500M$163M67.4%-85%
MetromileMILEFintech2020$200M$67M66.5%-100%
TalkspaceTALKHealthcare2021$400M$135M66.3%-75%
Desktop MetalDMIndustrials2020$600M$209M65.2%-100%
Nextdoor HoldingsKINDTechnology2021$600M$210M65%-82%
MarkforgedMKFGIndustrials2021$250M$95M62%-90%
BuzzFeedBZFDMedia/Entertainment2021$600M$250M58.3%-97%
WallboxWBXEV/Automotive2021$500M$210M58%-85%
StemSTEMClean Energy2020$800M$382M52.3%-99.4%
WeWorkWEReal Estate2021$7.0B$3.5B50%-100%
Microvast HoldingsMVSTEV/Automotive2021$600M$310M48.3%-91%
Planet Labs PBCPLAerospace/Defense2021$400M$220M45%-65%
Wheels Up ExperienceUPAerospace/Defense2021$2.5B$1.5B40.3%-85%
Porch GroupPRCHReal Estate2020$600M$412M31.3%-75%
Cyxtera TechnologiesCYXTTechnology2021$900M$700M22.2%-100%
Grab HoldingsGRABTechnology2021$3.0B$2.4B21.4%-52%
Whole Earth BrandsFREEConsumer2020$600M$480M20%-100%
GrindrGRNDTechnology2022$350M$305M12.9%40%
Playtika HoldingsPLTKMedia/Entertainment2021$2.8B$2.5B10.7%-15%
Redwire CorporationRDWAerospace/Defense2021$300M$311M✓ Met20%
Betterware de MéxicoBWMXConsumer2020$500M$750M✓ Met70%
Hims & Hers HealthHIMSHealthcare2020$600M$1.5B✓ Met320%

Why Could SPACs Make Wild Projections?

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.

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