SPACs in 2021: Bane or a Boon?

  In the early 2000s there was a boom of BPOs in India. It was driven by foreign companies who outsourced the non-technical mundane task of sticking to a phone, to a foreign land where labour was cheap, and a huge demand for work among young people looking to make a quick buck existed. Why this analogy in the start of this article? Well, it’ll help you understand the SPACs just a little better.  Imagine someone famous asking you to invest in a company. Chances are, you will want to know more before investing. What if we tell you, there is no company, at least not yet. Will you still invest your money? This is a pitch similar to the ones given by the owners of SPACs, or Special Purpose Acquisition Companies, which is arguably the hottest asset class in the U.S. of late, led by notable investors such as hedge fund billionaire Bill Ackman and former Facebook Executive Chamath Palihapitiya. In the past few months, and more so after global lockdowns owing to the COVID-19 pandemic situatio