It's no 2021, but the SPAC market is humming again, and sponsors are even inking merger deals with targets.

With traditional exit routes remaining challenging, some VC-backed companies—especially in sectors like quantum computing, energy and AI infrastructure—are turning to SPACs to capitalize on current investor enthusiasm and US policy priorities. Sponsors have taken 144 vehicles public in 2025 and 117 in the first half of 2026.

But times are also different: new regulations, new approaches from sponsors, high interest rates and more considered dealmaking.

While the damage was done during the SPAC euphoria of 2020-22, the SEC eventually rolled out disclosure requirements that bar issuers from touting forward-looking growth and revenue projections. That earlier ability to sell investors on fantastical future growth and milestones had greatly contributed to the speculative excitement for moonshot companies. Moreover, executives at target companies now carry personal legal liability for false financial statements for the first time.

It remains to be seen whether the outcome for SPAC investors, especially the retail investors buying into the newly public companies, will be different this time around. During the pandemic-era boom, high-profile SPACs boomed, then went sharply bust. At least a couple of dozen subsequently filed for bankruptcy.

Sponsor incentives also came under scrutiny. The pandemic-era boom was fueled by a widely used structure that was criticized for misalignment, richly rewarding sponsors for closing a deal regardless of its quality or subsequent performance. That boom saw eye-popping deals like the $24 billion merger of luxury EV maker Lucid Motors with a SPAC; its stock is now down by more than 90% from the price paid by its early backers.

While some of the market "hacks" that SPACs previously provided are no longer available, the ongoing dearth of liquidity opportunities has made them attractive to some companies once again.

This article originally appeared on PitchBook News