Mitchell Presser spoke to Crunchbase News about the recent slowdown in the SPAC craze that dominated in 2020 and the first few months of 2021.
“It’s not surprising,” Mitchell said. “It’s much tougher to raise money for a SPAC this quarter than it was in the first quarter.”
He added that investors are seeking quicker deals and faster returns in the current market, so the changes add more incentives for investors.
“Sponsors are willing to overfund to give more guarantees to investors,” Mitchell said. “It’s a reaction to a tougher market.”
Mitchell said he is not sure these permanent changes.
“You likely will see the SPAC market come back.”
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