The SPAC Cycle

Every bubble follows a pattern: setup → boom → mania → collapse → aftermath. The SPAC cycle is a textbook example.

Peak Year

2021

613 SPACs

Peak Capital

$162.5B

Trough Year

2023

31 SPACs

Cycle Length

~5 years

Boom to bust

The Full Cycle

1

2019

The Setup

SPACs existed but were niche. 59 IPOs, $13.6B raised. The calm before the storm.

59 SPAC IPOs$13.6B raisedStill a niche product
2

2020

The Boom

COVID stimulus + zero rates + retail trading mania. SPACs go mainstream. 4x growth in one year.

248 SPAC IPOs (+320%)$83.4B raisedNikola hits $28B with no product
3

2021

The Mania

Peak insanity. More SPACs than traditional IPOs. Everyone launches one. Chamath plans A through Z.

613 SPAC IPOs (all-time record)$162.5B raisedMore SPACs than traditional IPOs
4

2022

The Collapse

Rate hikes crush growth stocks. SEC proposes rules. Banks flee. First bankruptcies begin.

86 SPAC IPOs (-86%)Goldman/Citi stop underwritingFirst EV SPAC bankruptcy
5

2023

The Graveyard

21 bankruptcies in one year. 95% redemption rates. The walking dead era. $46B in equity destroyed.

31 SPAC IPOs21 bankruptcies in one year95% average redemption rate
6

2024–25

Cautious Revival

New SEC rules in place. Smaller, more targeted SPACs return. Will they repeat history?

57 IPOs (2024), 71 (2025)New disclosure requirementsSmaller deal sizes, better targets?

Explore More

The Boom

How it all started

Year by Year

Annual SPAC data

Follow the Money

Where the dollars went

Analysis

Deep-dive articles