top of page

SPAC Market Makes a Mature Comeback in 2025

  • Writer: Miriam Zhou
    Miriam Zhou
  • Jun 21
  • 2 min read

Updated: Jun 26


The 2025 SPAC landscape is characterized by a calibrated resurgence: more disciplined sponsors, streamlined deal structures, shorter timelines, and smaller—but more efficient—capital raises.


As of June 21, 2025, the SPAC market has shown renewed activity. There have been 92 IPOs in the U.S. so far this year, of which 58 were SPAC IPOs, raising a total of over $11.7 billion.


Several notable trends have emerged in 2025:


  1. More Mature SponsorsThe new SPAC issuers are primarily sponsors who survived the previous SPAC boom. These returning sponsors are now considered more experienced and better acquainted with listing regulations, bringing greater maturity to the market.

  2. Shift in Unit StructureWe are seeing a shift from the traditional “share + warrant” structure to a “share + rights” structure. Warrants have become less attractive due to their liability classification and the additional complexities they create during the de-SPAC process. As a result, an increasing number of sponsors have abandoned the use of warrants.

  3. Shorter SPAC DurationUnlike the standard 24-month term (plus an optional 12-month extension) that dominated in previous years, this year’s SPACs are being structured with shorter timelines—typically 12 or 18 months with a 6-month extension option. This puts significant pressure on sponsors to complete a de-SPAC within a tighter timeframe. As a result, target companies now require highly experienced advisors to efficiently navigate the de-SPAC process and avoid incurring costly extension-related expenses.

  4. Smaller Deal SizesSPAC sizes tend to be smaller in 2025, largely due to persistently high redemption rates. Larger SPACs face greater difficulty in finding targets of sufficient scale to justify a merger. However, we have observed that some larger SPACs—especially those focused on fintech or crypto-related industries—are still launching, likely influenced by the success of Circle’s listing. While crypto-related targets have strong market potential, they are likely to face heightened scrutiny from the SEC during the de-SPAC process. This could lead to prolonged timelines and increased regulatory complexity, thereby raising the risk of incurring additional deferred underwriting fees.

 
 
 
bottom of page