Sponsor Profit Calculator

SPAC sponsors invest $25,000 and receive 20% of the company. Drag the slider and watch the obscene math unfold.

SPAC Trust Size (millions $)

$50M$300M$2B

Sponsor Invests

$25,000

That's it. Twenty-five thousand dollars.

Sponsor Gets (20% Equity)

$60M

2,400x return on investment

The Math

SPAC Trust Size$300M

Shares Issued at $1030,000,000 total

Sponsor Shares (20%)6,000,000 shares

Public Shares (80%)24,000,000 shares

Sponsor Cost Basis$0.0042 per share

Public Cost Basis$10.00 per share

The sponsor pays $0.0042 per share. You pay $10.00.

That's a 2,400x price difference for the exact same shares. The sponsor's $25,000 buys them 6,000,000 shares worth $60M at IPO price. This is the “promote” — and it's completely legal.