Are SPACS heading for a slowdown?

Unlike the first quarter of 2021, when SPACs were all the rage, it seems like SPACs are falling out of favor in the second quarter. Of the 300+ SPACs that have gone public in 2021, not many of them have done so since March 25, and merger deals have also slowed down in April. Is this slowdown reflective of our previous report on the bubble bursting or just a temporary issue?

Nonetheless, we do know that there are 400-odd SPACs that are still seeking targets for mergers, a statistic that means that the option for private companies to leverage the speed of going public via SPAC is widely available. While SPACs have targeted companies in the EV, biotech, and greentech industries, as those industries' companies fit the criteria that SPACs love -- namely, high-growth with good long-term potential -- the number of SPACs versus the number of private companies looking to go public may be out of balance. This imbalance is why we predict that SPACs may now venture into other sectors, such as software companies, including cybersecurity, quantum computing, and even social media community companies. It is worth mentioning that despite a slowdown, this month also saw the world’s largest SPAC merger with Grab.

Major SPAC mergers in April
🚖 Grab: Southeast Asia’s largest ride-hailing company
Acquirer: Altimeter Growth Corp
Valuation: $39.6BN

📱 Cellebrite Mobile: Israel’s digital forensics technology company that helps public safety agencies like the police hack phones
Acquirer: TWC Tech Holdings II
Valuation: $2.4BN

🤖 Vicarious Surgical: Designs surgical robots
Acquirer: D8 Holdings
Valuation: $1.1BN

⚕️ Sema4: AI-driven genomic & clinical data platform company
Acquirer: CM Life Sciences
Valuation: $793MM

⚾️ The Topps Company: Manufacturer of candy, gum, and tradable collectibles including NFTs
Acquirer: Mudrick Capital Acquisition Corporation II
Valuation: $1.3BN

🤖 Sarcos: Manufactures and designs mobile, dexterous robotic systems
Acquirer: Rotor Acquisition
Valuation: $1.3BN

💉 Better Therapeutics: Digital therapeutics company focused on diabetic treatment
Acquirer: Mountain Crest Acquisition Corp. II
Valuation: $57.5MM

🏥  Tango Therapeutics: Biotech company developing precision medicine for people to cure cancer
Acquirer: BCTG Acquisition
Valuation: $167MM