August Flash SPAC Update: Its Closing Time
Tech SPACs crushed all records in the first quarter of 2021, completing 182 IPOs with $60B raised and announcing another 73 acquisitions with an aggregate deal value of $201B. These IPO numbers are not annualized, and for good reason, because they will never be repeated again in a single quarter. Completed SPAC IPOs dropped to 28 in Q2 and announced deals fell to 43. Wall Street did what Wall Street does and went overboard, and PIPE investors responded in April by temporarily shutting their purses before slowly cracking them open again in June and July. They are no longer saying yes to everything and have grown far more skeptical and selective on what SPACs they deem worthy of de-SPACing. June and July put us on track for an annualized rate of 240 SPAC IPOs and 240 acquisitions, which would amount to a whopping $72B in IPO proceeds and $432B in annualized M&A value, equal to 2/3 of an entire year of typical Tech M&A deal flow.