SPAC Returns: The Complete Performance Data
Do SPACs make money? The data is devastating. Since 2019, the average SPAC has returned -62.0% after merger. Here's the complete breakdown by year, sector, and sponsor type â compared to simply buying the S&P 500.
Average SPAC Return
-62.0%
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 | 2 | 59 | -99.3% | +31.5% | -130.8% | 100% |
| 2020 | 12 | 248 | -57.2% | +18.4% | -75.6% | 83% |
| 2021 | 52 | 613 | -69.3% | +28.7% | -98.0% | 94% |
| 2022 | 5 | 86 | -69.2% | -18.1% | -51.1% | 80% |
| 2023 | 3 | 31 | -98.5% | +26.3% | -124.8% | 100% |
| 2024 | 1 | 57 | -30.0% | +25.0% | -55.0% | 100% |
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.
â Calculate your personal SPAC opportunity costSPAC Returns by Sector
Some sectors fared worse than others â but none escaped the carnage. EV and space SPACs were the biggest destroyers of capital.
| Sector | # SPACs | Avg Return |
|---|---|---|
| EV/Trucks | 4 | -100.0% |
| Biotech/Genomics | 1 | -100.0% |
| Autonomous | 3 | -100.0% |
| Mobility | 1 | -100.0% |
| Retail Tech | 1 | -100.0% |
| Cybersecurity | 2 | -100.0% |
| AgTech | 1 | -100.0% |
| Manufacturing | 1 | -100.0% |
| Software | 1 | -100.0% |
| Industrial | 1 | -100.0% |
| Automotive | 1 | -100.0% |
| Cannabis | 2 | -100.0% |
| Energy Storage | 2 | -99.7% |
| 3D Printing | 2 | -99.5% |
| Fitness | 1 | -98.9% |
| Biotech | 1 | -97.5% |
| EV | 15 | -94.7% |
| Insurtech | 2 | -91.0% |
| Real Estate | 6 | -87.5% |
| Crypto | 2 | -85.3% |
| Gaming | 2 | -57.4% |
| Aviation | 4 | -41.3% |
| Fintech | 3 | -39.8% |
| Tech | 3 | -32.3% |
| Space | 6 | -30.9% |
| Media | 1 | -30.0% |
| Consumer | 2 | -15.0% |
| General | 4 | 0.0% |
| Healthcare | 4 | +19.6% |
| Sports Betting | 1 | +200.0% |
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 | 3 | -100.0% |
| strategic | 1 | -97.5% |
| serial SPAC | 19 | -89.4% |
| other | 24 | -79.9% |
| financial sponsor | 18 | -43.2% |
| celebrity | 10 | -36.8% |
| PE firm | 5 | -19.6% |
Key Takeaways
- âĒThe average SPAC has lost 62% of investor capital after merger â compared to the S&P 500's gains.
- âĒ85% of de-SPACed companies trade below their $10 IPO price.
- âĒNo sector, no sponsor type, and no vintage year produced consistently positive returns for SPAC investors.
- âĒThe 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 -62.0% after completing a merger. Only a small handful â like DraftKings and SoFi â 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.