# Could London see a SPAC boom in 2022? Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-02-15 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: How London's SPAC Market Stacks Up Against Europe Meta Description: Discover the surge in SPAC deals in London's fintech sector, with insights on the growing popularity of blank cheque companies in the UK and Europe. URL: https://financedigest.com/could-london-see-a-spac-boom-in-2022html ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/istock-1312094422-1736816242831-compressed.jpg) _![](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/02-1736816242773-compressed.jpg)_ _By **Arnon Shiboleth,** Co-CEO of Prytek_ Last year was an extremely busy period for M&A deals and IPO listings, especially within the fintech space, which remains one of the fastest growing sectors in London and accounted for nearly 50% of investment in 2021. According to the FT, technology start-ups raised a record breaking $25.5bn in funding last year which is double the total in 2020. It’s not just London either, it’s the rest of Europe too. But how [popular is the SPAC market](https://www.financedigest.com/growing-popularity-of-horseback-riding-to-bolster-sales-of-hoof-boots-market-fact-mr-report.html "Growing Popularity of Horseback Riding to Bolster Sales of Hoof Boots Market: Fact.MR Report") in London? For those that have miraculously managed to [avoid this buzzword last year](https://www.financedigest.com/scam-special-how-to-avoid-christmas-shopping-fraud-this-year.html "Scam Special: How to Avoid Christmas Shopping Fraud this Year"), a SPAC is a ‘blank cheque company’. It’s a shell corporation that [lists on a stock exchange](https://www.financedigest.com/verasity-vra-lists-on-tier-1-cryptocurrency-exchange-crypto-com.html "Verasity $VRA Lists on Tier-1 Cryptocurrency Exchange Crypto.com") with the purpose of acquiring a private company. This enables the private [company to become listed itself without going through the traditional initial public offering](https://www.financedigest.com/factbox-european-companies-offer-one-off-bonuses-hike-pay-amid-cost-of-living-crisis.html "Factbox-European companies offer one-off bonuses, hike pay amid cost-of-living crisis") (IPO) process. They have become an increasingly popular [solution for private companies that are less mature for a traditional IPO listing or acquisition](https://www.financedigest.com/aon-completes-acquisition-of-health-and-benefits-brokerage-and-solutions-firm-admix.html "Aon completes acquisition of health and benefits brokerage and solutions firm Admix"). Going down this route can also [save companies both time and money](https://www.financedigest.com/how-to-save-money-for-a-car.html "How to save money for a car"). This is particularly helpful for young, high-growth [companies that need](https://www.financedigest.com/italys-windfall-tax-on-energy-companies-needs-to-be-rewritten-pm.html "Italy’s windfall tax on energy companies needs to be rewritten – PM") a SPAC to be ready for public trading. In the US, the number of SPAC deals [continues to significantly outweigh those in the UK and Europe](https://www.financedigest.com/workday-continues-momentum-across-europe.html "Workday continues momentum across Europe"). According to data by Refinitiv, Europe completed only 12 SPAC IPOs [worth $3.9 billion](https://www.financedigest.com/why-a-quiet-revolution-in-the-cloud-is-worth-billions.html "Why A Quiet Revolution In The Cloud Is Worth Billions") from January to May 2021. In the same period in the US, there were 331 [SPAC IPOs worth $98.5 billion](https://www.financedigest.com/glencore-to-sell-australian-copper-mine-to-spac-for-1-1-billion.html "Glencore to sell Australian copper mine to SPAC for .1 billion"). But all hope is not lost. [Europe experienced](https://www.financedigest.com/europe-experienced-second-warmest-winter-on-record.html "Europe experienced second-warmest winter on record") some impressive year-on-year growth last year. In 2021, the number of deals tripled compared to 2020, and the transaction volume has risen from $496 million across 4 SPACs in 2020 to $3.9 billion across 12 SPACs in 2021. Interestingly, a large majority of these SPAC [deals took place in Amsterdam and Frankfurt](https://www.financedigest.com/u-s-mid-tier-lenders-shares-rise-in-frankfurt-after-svb-deal.html "U.S. mid-tier lenders shares rise in Frankfurt after SVB deal"). In fact, Sir Richard Branson has [announced that the Virgin Group](https://www.financedigest.com/incentive-fm-group-announces-latest-strategic-me-acquisition.html "INCENTIVE FM GROUP ANNOUNCES LATEST STRATEGIC M&E ACQUISITION") is drawing up plans to list a new SPAC in Amsterdam in the coming months. London, on the other hand, has long been a cold spot for activity. To combat this and to entice healthy capital flows into the industry, the FCA announced several [changes last year to promote investor](https://www.financedigest.com/bayer-hits-8-month-high-as-investors-welcome-ceo-change.html "Bayer hits 8-month high as investors welcome CEO change") protection and the smooth operation of markets in relation to SPACs. One [change included reducing the minimum amount that SPACs need](https://www.financedigest.com/a-mindset-change-is-needed-in-the-financial-services-industry.html "A mindset change is needed in the financial services industry") to raise – from £200 million to £100 million – to help them become more accessible. The hope is that these changes will dramatically improve the attractiveness of the [London Stock](https://www.financedigest.com/oil-stocks-thrust-london-shares-to-positive-2023-start.html "Oil stocks thrust London shares to positive 2023 start") Exchange for companies that are deciding to go public this way. But has the FCA done enough? Some argue that London’s regulations are still a lot less flexible than other markets, and with SPACs on track to become a more popular investment vehicle in the Asian market too – there are reports that the Singapore stock exchange is [set to list its first SPAC this week – has London](https://www.financedigest.com/oneweb-eutelsat-set-for-secondary-london-listing-the-times.html "OneWeb-Eutelsat set for secondary London listing – The Times") left it too late? We’ll have to [wait and see](https://www.financedigest.com/wait-and-see-u-s-companies-curb-investment-as-they-await-fed-moves.html "Wait and see: U.S. companies curb investment as they await Fed moves"). --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---