SPACS or special acquisition companies are becoming a popular way to raise money. It is a unique and innovative concept that, on the surface, doesn't seem to make sense.
A SPAC is a company that raises money from investors to acquire another company. They are typically listed on an exchange and have a board of directors and management team.
SPACs have been around for quite some time, but in 2020 there was a sizable SPAC boom. 248 SPACs went public in 2021 and raised a total of $83 billion.