SPAC Transactions Come to a Screeching Halt
If you were hoping for a SPAC deal to come along to fund your startup, don’t hold your breath. One seemingly small change in accounting guidance from the SEC has triggered an almost complete shutdown of the enthusiasm for SPACs, with a 90% drop in SPAC deals from March to April.
The good news is that there are still other alternative ways to raise significant funding, and the market is hot to fill the vacuum created by the SPAC crackdown.
SPAC transactions come to a halt amid SEC crackdown, cooling retail investor interest
The SEC issued accounting guidance that would classify SPAC warrants as liabilities instead of equity instruments.