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Commentary

SPACs Party Like It's 2020

The enthusiasm for blank check companies continues in 2021, and electric vehicles and mobility tech could benefit.

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In 2020 there were close to 250 special purpose acquisition companies, or SPACS, which raised more than $83 billion, with an average size of $334 million, according to spacinsider.com. So far this year, the count is already at 75. Why all the excitement for SPACs?

Serial SPAC’er Chamath Palihapitiya invested in two companies going public via a SPAC in one day. This is on top of the six blank-check vehicles he helped raise in 2020.

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Ruth Saldanha does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.