Fund Managers’ Cash Levels Drop, Triggering Sell Signal in Bank of America Survey

SPACs (Special Purpose Acquisition Companies), which gained massive popularity in 2020 and 2021, are making a strong comeback in 2025. With 71 new launches so far this year, they’ve already surpassed the total number of launches in all of 2022. After a sharp decline in popularity—caused by the collapse of many companies that went public through SPAC structures—the model is now resurging stronger than ever, with funds raised already exceeding the 2021 peak.

SPACs have served as an alternative route for startups to access public markets without undergoing the traditional IPO process. However, market volatility and a lack of regulation raised concerns among investors, leading to sharp declines in many SPAC-backed firms. Despite this, SPACs remain an appealing option for companies seeking rapid access to capital.