When it comes to SPAC vs. IPO, the fact of the matter is that the shell company SPACs are a lot faster and more nimble than traditional IPOs. The SPAC model is alluringly simple — unlike with a traditional IPO, you can start seeking investment capital right away, and decide where it’s going to go later.

SPAC investors are willing to hop aboard this wild ride because they’re assuming they’ll get something out of it — even if what they do get ends up being a surprise! Worse comes to worst, they can simply redeem their shares.