--- title: "SPAC, Special Purpose Acquisition Company | MedTech Terms" description: "A publicly traded shell company formed to raise capital through an IPO with the sole purpose of acquiring or merging with a private operating company." lang: en json-ld: | { "@context": "https://schema.org", "@graph": [ { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/spac#term", "name": "Special Purpose Acquisition Company", "alternateName": "SPAC", "description": "A Special Purpose Acquisition Company (SPAC) is a publicly traded shell company that raises capital in an IPO and then has a defined window (typically 18-24 months) to identify and merge with a private operating company in a 'de-SPAC' transaction. Several MedTech companies (e.g., Butterfly Network, Owlet, 23andMe) went public via SPAC during the 2020-2021 boom. The SEC's January 2024 final rule on SPACs materially raised disclosure and gatekeeper liability standards, dampening the market.", "url": "https://medtechterms.com/terms/spac", "termCode": "spac", "inDefinedTermSet": { "@type": "DefinedTermSet", "name": "MedTech Terms", "url": "https://medtechterms.com/terms" } }, { "@type": "Article", "@id": "https://medtechterms.com/terms/spac#article", "headline": "SPAC, Special Purpose Acquisition Company", "description": "A publicly traded shell company formed to raise capital through an IPO with the sole purpose of acquiring or merging with a private operating company.", "url": "https://medtechterms.com/terms/spac", "mainEntityOfPage": { "@type": "WebPage", "@id": "https://medtechterms.com/terms/spac" }, "about": { "@id": "https://medtechterms.com/terms/spac#term" }, "articleSection": "Investment & Finance", "inLanguage": "en", "keywords": "Special Purpose Acquisition Company, SPAC, Investment & Finance, medical device, MedTech", "author": { "@type": "Person", "name": "Christian Espinosa", "jobTitle": "Founder, Blue Goat Cyber", "url": "https://bluegoatcyber.com" }, "publisher": { "@type": "Organization", "name": "MedTech Terms", "url": "https://medtechterms.com" }, "isPartOf": { "@type": "WebSite", "name": "MedTech Terms", "url": "https://medtechterms.com" }, "datePublished": "2026-05-09", "dateModified": "2026-05-09", "citation": [ { "@type": "CreativeWork", "name": "SEC, SPAC Final Rule (2024)", "url": "https://www.sec.gov/news/press-release/2024-8", "publisher": { "@type": "Organization", "name": "SEC" } }, { "@type": "CreativeWork", "name": "SEC Final Rule 33-11265, SPACs, Shell Companies, and Projections", "url": "https://www.sec.gov/files/rules/final/2024/33-11265.pdf", "publisher": { "@type": "Organization", "name": "SEC" } }, { "@type": "CreativeWork", "name": "NVCA Model Documents", "url": "https://nvca.org/model-legal-documents/", "publisher": { "@type": "Organization", "name": "NVCA" } } ], "mentions": [ { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/ipo#term", "name": "Initial Public Offering", "alternateName": "IPO", "url": "https://medtechterms.com/terms/ipo" }, { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/liquidity-event#term", "name": "Liquidity Event", "url": "https://medtechterms.com/terms/liquidity-event" }, { "@type": "DefinedTerm", "@id": "https://medtechterms.com/terms/exit-multiple#term", "name": "Exit Multiple", "url": "https://medtechterms.com/terms/exit-multiple" } ] }, { "@type": "BreadcrumbList", "itemListElement": [ { "@type": "ListItem", "position": 1, "name": "Home", "item": "https://medtechterms.com/" }, { "@type": "ListItem", "position": 2, "name": "Terms", "item": "https://medtechterms.com/terms" }, { "@type": "ListItem", "position": 3, "name": "Investment & Finance", "item": "https://medtechterms.com/terms?cat=Investment%20%26%20Finance" }, { "@type": "ListItem", "position": 4, "name": "Special Purpose Acquisition Company", "item": "https://medtechterms.com/terms/spac" } ] } ] } --- [ MedTech Terms The authoritative reference ](/) Browse Learn [Latest](/latest) About 1. [Home](/) 2. / 3. [Terms](/terms) 4. / 5. [Investment & Finance](/terms?cat=Investment%20%26%20Finance) 6. / 7. Special Purpose Acquisition Company [All terms](/terms) Investment & Finance [Startup Lifecycle](/ecosystems/startup-lifecycle)SPAC # Special Purpose Acquisition Company A publicly traded shell company formed to raise capital through an IPO with the sole purpose of acquiring or merging with a private operating company. Reviewed by [Christian Espinosa, Founder, Blue Goat Cyber](/authors/christian-espinosa) Last reviewed May 9, 2026 ## Definition A Special Purpose Acquisition Company (SPAC) is a publicly traded shell company that raises capital in an [IPO](/terms/ipo) and then has a defined window (typically 18-24 months) to identify and merge with a private operating company in a 'de-SPAC' transaction. Several MedTech companies (e.g., Butterfly Network, Owlet, 23andMe) went public via SPAC during the 2020-2021 boom. The SEC's January 2024 final rule on SPACs materially raised disclosure and gatekeeper liability standards, dampening the market. What the regulation says SEC Final Rule on SPACs (January 2024), enhanced disclosure of [dilution](/terms/dilution), conflicts, and projections; clearer underwriter and target liability under Section 11. ## What this means in practice Post-2024, SPACs are no longer a faster or cheaper path to public markets for most MedTech companies. Many de-SPAC MedTechs traded poorly post-merger, reshaping investor appetite. Common pitfalls - • Treating projections in the de-SPAC proxy as marketing rather than as Section 11 liability exposure. ## Related terms Grouped by theme ### Editor's picks · Hand-selected related concepts [ Investment & Finance Exit Multiple Valuation ratio applied at exit, e.g., enterprise value to revenue. ](/terms/exit-multiple)[ Investment & Finance Initial Public Offering(IPO) First sale of a company's stock to public investors via a registered SEC offering, typically on NYSE or Nasdaq. ](/terms/ipo)[ Investment & Finance Liquidity Event Any transaction that converts illiquid private-company equity into cash or freely tradable securities, typically IPO, M&A, or secondary tender. ](/terms/liquidity-event) ### More in Investment & Finance · Same category [ Investment & Finance 409A Valuation An independent fair-market-value appraisal of common stock used to set tax-compliant strike prices for employee stock options. ](/terms/409a-valuation)[ Investment & Finance Anti-Dilution Protection Adjustment that protects investors if the company raises a future round at a lower price. ](/terms/anti-dilution)[ Investment & Finance Bridge Round Interim financing between priced rounds, usually convertible. ](/terms/bridge-round)[ Investment & Finance Burn Rate Rate at which a company spends cash, typically expressed monthly. ](/terms/burn-rate) Cited by Where this term appears across MedTech Terms. Ecosystems (1) - [Startup Lifecycle](/ecosystems/startup-lifecycle) ## Primary references 3 sources Link health: 3 verified · last checked 2026-06-20 SEC· 2 NVCA· 1 1. [1 SEC, SPAC Final Rule (2024) Verified SEC · sec.gov ](https://www.sec.gov/news/press-release/2024-8) 2. [2 SEC Final Rule 33-11265, SPACs, Shell Companies, and Projections Verified SEC · sec.gov ](https://www.sec.gov/files/rules/final/2024/33-11265.pdf) 3. [3 NVCA Model Documents Verified NVCA · nvca.org ](https://nvca.org/model-legal-documents/) Inline markers like \[1\] jump to the matching reference above. Sponsor note ### Diligencing a MedTech cybersecurity posture? Blue Goat Cyber supports investors and acquirers with cybersecurity diligence on connected MedTech assets. [Book a 30-minute discovery session](https://go.bluegoatcyber.com/meetings/blue-goat-cyber/discovery-session) - No obligation - Expert-led from minute one - NDA available on request MedTech Terms is a community resource sponsored by [Blue Goat Cyber](https://bluegoatcyber.com). Definitions are independent of any vendor. On this term Category Investment & Finance Acronym SPAC Sources 3 Updated 5/9/2026 [Compare with another term](/compare?a=spac) Learn in 60 seconds Card Lesson Quiz A publicly traded shell company formed to raise capital through an IPO with the sole purpose of acquiring or merging with a private operating company. - · Post-2024, SPACs are no longer a faster or cheaper path to public markets for most MedTech companies. - · Many de-SPAC MedTechs traded poorly post-merger, reshaping investor appetite. - · Several MedTech companies (e.g., Butterfly Network, Owlet, 23andMe) went public via SPAC during the 2020-2021 boom. Remember this Watch out: Treating projections in the de-SPAC proxy as marketing rather than as Section 11 liability exposure. Related terms - [Initial Public Offering(IPO) ](/terms/ipo) - [Liquidity Event ](/terms/liquidity-event) - [Exit Multiple ](/terms/exit-multiple) You may also need Auto-suggested from Investment & Finance and shared keywords. - [Royalty Financing ](/terms/royalty-financing) - [Specialty MedTech Venture Capital ](/terms/specialty-medtech-vc) - [409A Valuation ](/terms/409a-valuation) - [Due Diligence ](/terms/due-diligence) - [Earn-Out ](/terms/earn-out) - [Mergers and Acquisitions(M&A) ](/terms/m-and-a) [All Investment & Finance terms](/terms?cat=Investment%20%26%20Finance) MedTech Terms An authoritative, plain-language reference for the regulatory, quality, cybersecurity, and software terms that shape modern medical devices. Browse - [All terms](/terms) - [A–Z index](/a-z) - [Categories](/categories) - [Ecosystems](/ecosystems) - [Learning paths](/paths) - [Compare terms](/compare) - [Quiz](/quiz) Resources - [FDA Medical Devices](https://www.fda.gov/medical-devices) - [EU MDR](https://eur-lex.europa.eu/eli/reg/2017/745/oj) - [IMDRF](https://www.imdrf.org/) - [Methodology](/methodology) - [Changelog](/changelog) - [Editor: Christian Espinosa](/authors/christian-espinosa) - [About this site](/about) © 2026 MedTech Terms. Reference content for educational purposes - not regulatory advice. A community resource sponsored by [Blue Goat Cyber](https://bluegoatcyber.com)