‘Too much money’ chasing too few good SPAC deals

Ark Invest’s Cathie Wood on Tuesday raised concerns about investors pouring cash into speculative SPAC deals.

“We think there will be some accidents in the SPAC space given how much money has been thrown at it,” Wood said during an Ark Invest webinar on Tuesday. “I’m always concerned when I see too much money chasing perhaps too few really good opportunities.”

Special purpose acquisition companies have raised nearly $100 billion in the first three months of 2021, according to data from SPAC Research. Meanwhile, in all of 2020, there was $83.4 billion in issuance, the firm found.