The Senior Managing Director at D.F. King and Co. told Crunchbase News that forming SPACs or blank-check companies is definitely a trend among venture capital firms. Known more formally as a special purpose acquisition company, they are described as “a shell corporation listed on a stock exchange with the purpose of acquiring a private company, thus making it public without going through the traditional initial public offering process.”
The Crunchbase News article said that more than 160 SPACs have raised more than $48 billion in gross proceeds thus far in 2021. In comparison, last year, which was also a record year for SPACs, saw 248 blank-check companies raised $83 billion.
