Spacs, which became a major story in the US stock market at the start of this year, are shell companies that are set up with the sole purpose of merging with a private firm to take it public.
A conventional initial public offering costs about $1m, according to Michael Lints, partner at Golden Gate Ventures.
“They were viewed as a shady way of getting a company listed,” said Mr Lints.
After a record number of Spac listings in the first three months of this year, however, the US stock market regulator – the Securities and Exchange Commission – issued guidance on Spacs.
But as the regulatory filing backlog clears, Spacs are making a comeback.