Spurred by the COVID-19 pandemic and the virtual care boom, SPACs have been on a red-hot streak, triggering a whirlwind of public exit activity for healthcare and digital health startups, Fierce Healthcare reports.
The craze hit a peak of 40 healthcare and life science IPOs for the first quarter of 2021—raising a combined total of $11 billion—before dropping to eight in the second quarter, according to S&P Global Market Intelligence data.
And these SPAC-powered deals are pumping a lot of cash into the market. Healthcare SPACs raised $11.1 billion in 2020, excluding additional financing from private investment in public equity (PIPEs) upon deal announcement or closing, according to a report from Evercore.
In 2021 so far, SPAC companies raised $12.7 billion in the first quarter and $3 billion in the second quarter, Evercore reports—a record-setting total of $15.7 billion. Read more.
