I think under normal circumstances this would be true. But VCs seem increasingly bad at picking winners vs. obvious scams (see latest failing SoftBank startup).

I think under normal circumstances this would be true. But VCs seem increasingly bad at picking winners vs. obvious scams (see latest failing SoftBank startup). In this environment, SPACs can be used as a way to dump garbage companies onto the public markets. Consider that WeWork would have probably been considered a great SPAC acquisition target (lots of hype, huge private valuation), while it failed to IPO using normal means because of dodgy financials.