2019

SPAC Market Year in Review

SPAC IPOs

59

Capital Raised

$13.6B

Avg Return

-8.0%

Bankruptcies

0

Market Context

2019 was the inflection point. The Virgin Galactic and DraftKings SPAC mergers proved that SPACs could attract exciting, brand-name companies. Suddenly, SPACs weren't just for obscure small-caps — they were a legitimate alternative to traditional IPOs. This attracted more sponsors, more capital, and more retail attention. The Nikola SPAC merger also began in 2019, setting the stage for what would become the SPAC era's most notorious fraud. 59 IPOs raised $13.6 billion, but the real story was the quality of targets improving — or so it seemed.

Key Events

59 SPAC IPOs raise $13.6B — growth accelerating
Virgin Galactic SPAC merger captures mainstream attention
DraftKings SPAC deal validates the structure for high-profile targets
Nikola SPAC merger begins — would later become the biggest fraud
SPAC arbitrage funds multiply, providing reliable IPO demand

Notable IPOs

Virgin Galactic (SCH)
DraftKings (DEAC)
Nikola (VTIQ)
Replay Acquisition

Notable Failures

Multiple 2017-vintage SPACs liquidate without deals