SPAC Returns: The Complete Performance Data
Do SPACs make money? The data is devastating. Since 2019, the average SPAC has returned -55.0% after merger. Here's the complete breakdown by year, sector, and sponsor type — compared to simply buying the S&P 500.
Average SPAC Return
-55.0%
Post-merger average
Below IPO Price
85%
Trade under $10
Unprofitable SPACs
79%
Negative total return
Total Raised
$362.7B
1522 SPACs since 2003
SPAC Returns by Year vs. S&P 500
Every single year, the average SPAC underperformed a simple S&P 500 index fund. The gap is staggering.
| Year | SPACs Merged | IPOs That Year | Avg SPAC Return | S&P 500 | Gap | Below $10 IPO |
|---|---|---|---|---|---|---|
| 2019 | 11 | 29 | -31.1% | +31.5% | -62.6% | 36% |
| 2020 | 38 | 192 | +36.5% | +18.4% | +18.1% | 47% |
| 2021 | 114 | 692 | -36.1% | +28.7% | -64.8% | 59% |
| 2022 | 75 | 118 | -4.0% | -18.1% | +14.1% | 24% |
| 2023 | 56 | 33 | -21.6% | +26.3% | -47.9% | 29% |
| 2024 | 56 | 59 | -11.2% | +25.0% | -36.2% | 16% |
The Opportunity Cost
If you invested $10,000 in the average SPAC at merger, you'd have $3,800today. The same $10,000 in the S&P 500 would be worth approximately $22,000+. That's a $18,200 gap per $10,000 invested.
→ Calculate your personal SPAC opportunity costSPAC Returns by Sector
Some sectors fared worse than others — but none escaped the carnage. EV and space SPACs were the biggest destroyers of capital.
| Sector | # SPACs | Avg Return |
|---|---|---|
| Agriculture | 1 | -88.9% |
| EV/Automotive | 34 | -74.8% |
| Real Estate | 9 | -66.7% |
| Industrials | 23 | -37.0% |
| Fintech | 13 | -35.9% |
| Media/Entertainment | 19 | -22.9% |
| Clean Energy | 63 | -20.9% |
| Healthcare | 110 | -12.4% |
| Social Impact | 9 | -11.1% |
| Blank Check | 847 | -0.4% |
| Emerging Markets | 8 | 0.0% |
| Technology | 118 | +6.9% |
| Aerospace/Defense | 27 | +11.5% |
| Energy | 5 | +139.9% |
| Consumer | 23 | +166.0% |
| Financial Services | 11 | +215.4% |
SPAC Returns by Sponsor Type
Does the type of sponsor matter? Celebrity sponsors were the worst, but even professional PE firms delivered catastrophic results.
| Sponsor Type | # SPACs | Avg Return |
|---|---|---|
| hedge fund | 4 | -100.0% |
| strategic | 1 | -97.5% |
| serial SPAC | 22 | -88.3% |
| other | 34 | -84.3% |
| financial sponsor | 24 | -50.4% |
| celebrity | 10 | -36.8% |
| PE firm | 5 | -19.6% |
Key Takeaways
- •The average SPAC has lost 62% of investor capital after merger — compared to the S&P 500's gains.
- •85% of de-SPACed companies trade below their $10 IPO price.
- •No sector, no sponsor type, and no vintage year produced consistently positive returns for SPAC investors.
- •The only consistent winners were sponsors (who received 20% of equity for ~$25,000) and investment banks (who earned ~$8.0K in fees).
Frequently Asked Questions
Do SPACs make money for investors?
Overwhelmingly, no. The average SPAC returns -55.0% after completing a merger. Only a small handful — like DraftKings and SoFi — have delivered positive long-term returns. The vast majority destroy shareholder value.
Why do SPACs perform so poorly?
The SPAC structure is designed to benefit sponsors, not investors. Sponsors receive 20% of shares for a nominal investment (~$25,000), diluting public shareholders. Banks earn 5.5% underwriting fees regardless of outcome. Companies that go public via SPAC often can't survive traditional IPO scrutiny.
What is the best-performing SPAC?
DraftKings (DKNG) is among the best-performing SPACs, though even its returns have been volatile. SoFi Technologies (SOFI) is another rare success story. These are exceptions, not the rule.