PUBLISHER: Frost & Sullivan | PRODUCT CODE: 1109312
PUBLISHER: Frost & Sullivan | PRODUCT CODE: 1109312
SPAC Deals of More than $16 Billion in 2021 Show SPAC Mergers Gaining Popularity among Start-ups Looking to Go Public Quicker and Easier
In 2020 and 2021 SPAC popularity exploded, grabbing the attention of investors, start-ups, technology companies, and regulators alike. The SPAC approach offers many start-ups, technology companies, and non-traditional automotive companies an alternative path to public market. Essentially blank check shell companies, SPACs are formed to list companies on stock exchanges or make them public without going through the traditional IPO process. Automotive/mobility-related SPACs are growing exponentially as this approach allows cash flow into the companies that need large capital to expand their operations and launch use-case-driven products in the market. The SPAC hype is quite relevant to automotive tech companies, with more than 40 SPACs announced in 2021 alone. This study provides an executive outlook of SPAC deals happening in the automotive industry.
The electric, autonomous, and urban air mobility (flying cars) segments experienced more SPAC formations than all other automotive industry verticals. Among them are Joby Aviation, Archer Aviation, Lilium, Blade Urban Air Mobility, Faraday Future, Fisker, Lucid Motors, Canoo, Polestar, and REE.