Color me skeptical and maybe one of the attorneys on HN could jump in, but solving the brain damage of an IPO reason seems like a red herring to me. SPAC could have value in a down market, when the IPO market is closed and a company is forced to raise a down round. Ratchets would kick in and founders would lose equity. If the SPAC, after fees, is able to offer a higher valuation to the company then its best alternative, it might actually work to benefit the company.

I haven't seen anyone comment about this down market scenario this past week and wondering if someone smarter than me had any thoughts?